Ferreira named new Malaga coach
The 64-year-old was sacked by Porto last month having led them to three consecutive Portuguese league titles between 2007/09. He also took them out of the Champions League group stages in all four seasons at the club.
"It's a great challenge, after 36 years as a coach, to have the opportunity to train a Malaga club with such an ambitious project over the next few years," Ferreira told a news conference.
"They have asked me to get the team into the top 10 (in the first year), to create an identity, to find players and to build a structure within the club, to steadily make it stronger."
Malaga have just been bought by a member of the Qatari royal family, Sheikh Abdullah Bin Nasser Al-Thani, for a fee of 36 million euros.
Ferreira replaces Juan Ramon Lopez Muniz. Malaga avoided relegation on the last day of the season in May to finish 17th in La Liga.