Peseiro, who quit Romania's Rapid Bucharest last month, is handed the task of helping the Gulf giants qualify for the 2010 World Cup finals.

Former coach Al-Johar left the post last week to become a technical director for the team, who are now fourth in the five-team Group 2 of the qualifiers' final phase.

The Saudis haven’t missed out on the big competition since making their first appearance in USA 1994.

Peseiro had a previous spell with Saudi champions Hilal in 2006-2007, but he didn’t last long with the Riyadh giants.

The former Sporting Lisbon and Panathinaikos boss will be Saudi Arabia's 20th coach since 1994.