Saudi Arabians, though, remember him for his success in charge of Al Hilal in 2006-07, when he won 15 matches before resigning abruptly.
And on this basis, they have given him the difficult task of reviving the country’s FIFA World Cup 2010 qualifying hopes.
Peseiro has been unveiled as Saudi’s 20th national coach since 1994. He takes over from Nasser Al Johar, who resigned this week after Saudi Arabia’s 1-0 World Cup qualifying defeat to DPR Korea.
Prince Nawaf Bin Faisal, Vice President of the Saudi Football Federation (SAFF) and the head of the Saudi National Teams Committee, was quoted as saying: “We had put many names on the table and finally we decided on Peseiro.”
The loss to Korea sent the Saudis down to fourth place in Group B after four matches, three points behind the second-placed Koreans with four games remaining.
The top two teams gain automatic qualification to the South Africa finals while the third-placed team must endure the stress of play-offs.
Peseiro, plucked from Greek side Panathinaikos, must now prepare the players for a difficult trip to Tehran to face third-placed Iran on 28 March.
Saudi have qualified for the past four World Cup finals.
The 48-year-old has in the past also coached Sporting Lisbon, whom he took to the 2005 UEFA Cup final, and Rapid Bucharest. He had a short stint at Real Madrid as assistant to Carlos Quieroz.
Saudi Arabia has a history of hiring coaches from Latin America. Peseiro brings much of those ideals with him to his new job.