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Mancini's first season in charge at the San Siro showed signs of improvement with the team winning the Italian Cup and reaching the quarter-finals of the Champions League but a leaky defence cost them vital points in the fight for the 'scudetto'.
Inter have not won the Italian league since 1989.
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Nilsson quits Saints for Panathinaikos
By Barney Spender
ATHENS, Aug 1 (Reuters) - Sweden's Mikael Nilsson has joined Panathinaikos from England's Southampton, the Greek side said on Monday.
No details were given but second division Southampton, who were relegated from the Premier League last season, are expected to receive in the region of 600,000 euros ($726,000) for the international midfielder.
"I am really glad about the completion of the deal and I am looking forward to playing for Panathinaikos," the 27-year-old midfielder told the Greek club's website. "They are a great side and this is an excellent career opportunity for me."
Nilsson, who has signed a three-year contract, is recovering from a hamstring injury and is expected to be fit for Panathinaikos's third qualifying round Champions League tie against Wisla Krakow in Poland on Aug 10.
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Schalke pull out of Baros deal, but sign Larsen
BERLIN, Aug 1 (Reuters) - German Bundesliga side Schalke 04 have pulled out of a potential deal to buy Czech striker Milan Baros from Liverpool but have completed the transfer of Danish forward Soren Larsen.
Schalke coach Ralf Rangnick told German media on Saturday the German club and Baros had agreed personal terms.
However, the respective clubs could not agree a transfer fee and English Premier League side Liverpool were unwilling to loan Baros out to the Schalke, the German club said on Monday.
"The club will only sell and not loan out," said sporting director Rudi Assauer. "But it's almost impossible to agree to eight to 10 million euros. So Milan Baros will not be moving to Schalke 04."
Baros, 23, had previously said he wanted to remain at Liverpool, but manager Rafael Benitez did not select the striker for the first two qualifying rounds of the Champions League this season.
The European champion's asking price -- believed to be around nine million euros ($10.89 million) -- has been a sticking point. Aston Villa have reportedly had an earlier offer of seven million euros turned down.
"It would only work if we were guaranteed of playing in the Champions League three times in a row. But no one has such a guarantee," Assauer said.
Schalke have, however, signed Denmark striker Soren Larsen from Swedish league leaders Djurgarden.
The Bundesliga runners-up have agreed a four-year contract with the 23-year-old, who was presented with the prized number nine shirt when he signed the deal on Monday.
German media said his transfer cost Schalke around two million euros.
The German side, who have qualified for the group stage of the Champions League, are also interested in Greece defender Sotiris Kyrgiakos.
The 26-year-old is currently on loan from Panathanaikos to Scottish side Rangers.
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Goalkeeper Prunea joins National Bucharest
BUCHAREST, Aug 2 (Reuters) - Goalkeeper Florin Prunea signed a two-year contract with Romanian first division team National Bucharest on Tuesday.
"My deal with National is now valid and I can play in the first championship home match against FCM Bacau this weekend," Prunea, who left Greek club Xanthi, told Reuters.
Prunea, who turns 37 next week, played 40 internationals for Romania and helped the team to reach the 1994 World Cup quarter-finals.
He also played for other Romanian clubs, including Dinamo Bucharest.
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Wigan agree fee with Wolves for Senegal striker Camara
LONDON, Aug 2 (Reuters) - Premier League Wigan Athletic have agreed an undisclosed fee with Wolverhampton Wanderers for Senegal international striker Henri Camara.
"Wolves have this morning confirmed that they have accepted an offer from newly-promoted Wigan Athletic for striker Henri Camara," the English second division club said on their website.
The 28-year-old has not played for Wolves since their relegation from the top flight in 2004 and spent last season on loan, first at Scottish side Celtic and then back in the Premier League with Southampton.
Wigan, promoted last season, host English champions Chelsea in their first match at the top level of English football on August 14.
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Alkmaar defender Kromkamp to sign for Villarreal
MADRID, Aug 2 (Reuters) - Dutch international defender Jan Kromkamp has reached an agreement to join Villarreal, the Primera Liga club said on Tuesday.
Villarreal said that the 24-year-old right back, who has played for AZ Alkmaar since 2000, would sign a contract for four or five years with the club.
According to Spanish media reports, Villarreal are expected to pay around six million euros ($7.26 million) for the defender.
Kromkamp played an instrumental role in the Dutch side's run to the semi-finals of last season's UEFA Cup and gave an impressive display against Villarreal when they knocked the Spaniards out in the quarter-finals.
As well as Kromkamp, Villarreal have also signed Italian midfielder Alessio Tacchinardi, Argentine goalkeeper Mariano Barbosa and Ecuador midfielder Antonio Valencia to strengthen their squad in the close season.
The club are preparing for a difficult tie against Everton in the third qualifying round of the Champions League after finishing in a best ever third place in the Primera Liga last season.
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Wilfried Dalmat follows brother Stephane to Racing
MADRID, Aug 2 (Reuters) - French midfielder Wilfried Dalmat will play alongside his brother Stephane at Racing Santander next season after signing a one-year deal with the Primera Liga side on Tuesday.
The club said that the 23-year-old, who played for Grenoble last season, had impressed the coaching staff while training with the club and they had decided to offer him a contract for the forthcoming campaign.
Before joining Grenoble the former France Under-21 international had spells with Lecce, Nantes, Olympique Marseille and Chateauroux.
Brother Stephane, who is also a midfielder, signed a five-year contract with Racing last month.
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Uruguay captain Montero signs for San Lorenzo
BUENOS AIRES, Aug 4 (Reuters) - Uruguay captain Paolo Montero has signed a one-year contract to play for Argentine club San Lorenzo, a club spokesman said.
The 33-year-old, who has won 57 international caps, had spent the last 13 seasons in Italy, firstly with Atalanta and then with Juventus.
"I'm grateful for everything that Italy's given me but I've turned down other offers to continue in Europe," Montero said in a radio interview on Wednesday before agreeing terms.
"After 13 seasons, it's time to come back," added Montero, who has earned a reputation as one of the game's most ruthless defenders.
"Money's not important but I want to train with a group," said Montero, who has been training alone since leaving Italy.
San Lorenzo, who finished 16th in the Clausura championship held in the first half of the year, have also signed 34-year-old Paraguay striker Jose Cardozo from Mexico's Toluca.
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Monaco's Rodriguez joins Rangers
PARIS, Aug 4 (Reuters) - Monaco defender Julien Rodriguez has joined Glasgow Rangers, the Ligue 1 side announced on Thursday.
Sources inside the club say he is to sign a four-year deal with the Scottish champions.
Centre back Rodriguez, 27, has won the French title with Monaco in 2000.
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Luiz Alberto to leave Sociedad and sign for Santos
MADRID, Aug 4 (Reuters) - Real Sociedad defender Luiz Alberto will be returning to his home country of Brazil to play for Santos, he announced on Thursday.
"I'm hoping to travel to Brazil as soon as possible, either today or tomorrow, to pass a medical and sign a contract," the 27-year-old centre-back told a news conference in San Sebastian.
Luiz Alberto signed for Sociedad from St Etienne in January 2001 on the recommendation of then coach John Toshack, but was loaned out first to Porto Alegre and then Atletico Mineiro following the Welshman's dismissal in March 2002.
He returned to Sociedad last season and became a regular first-choice in the back four, playing 28 of the team's 38 league games.
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\Romania defender Contra to sign loan deal with Getafe
MADRID, Aug 4 (Reuters) - Atletico Madrid's Romanian international defender Cosmin Contra will join Getafe in a loan deal until the end of next season, the Primera Liga club said on Thursday.
The 29-year-old right back, who spent last season on loan at West Bromwich Albion and then Romanian first division side Poli AEK Timisoara, joined Atletico in 2002 and still has two years to run on his contract with the Primera Liga side.
Contra moved to Spain in 1999 when he signed for Alaves from Dinamo Bucharest. He had two brilliant seasons with the modest Basque side and played a big part in their shock run to the final of the UEFA Cup in 2001.
He moved to AC Milan immediately after the final but failed to earn himself a regular place in the starting line-up and returned to Spain a year later to sign for Atletico.
A serious ankle injury sustained at the start of the 2003-2004 season hampered his progress at the club and he has struggled to find his form since.
------------------------------Atletico Mineiro coach resigns twice in five days
RIO DE JANEIRO, Aug 4 (Reuters) - Atletico Mineiro coach Tite has resigned for the second time in five days following Wednesday night's 2-2 draw with fellow strugglers Paysandu in the Brazilian championship.
Tite, who also lost his job at Corinthians earlier in the year, quit for the first time following Saturday's 3-1 defeat by Goias.
The directors persuaded him to stay on but he resigned again after watching his side twice throw away the lead against the championship's bottom club, Atletico said on their official website.
"I'm frustrated," Tite told reporters after becoming the 18th coaching victim of the championship which started on April 23.
"Usually, I have left teams with a stamp of quality but this time it didn't work out."
Atletico, who won the inaugural Brazilian championship in 1971, are 21st in the 22-team table with 13 points, ahead of Paysandu on goal difference.
Meanwhile, second-placed Ponte Preta named former Brazil goalkeeper Zetti as their new coach.
Zettti, who led Fortaleza to promotion from the second division last year, replaces Oswaldo Alvarez, who left the team to take over at Japan's Tokyo Verdy.
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Konstantinidis returns to PAOK from Panathinaikos
ATHENS, Aug 5 (Reuters) - Greek international midfielder Pantelis Konstantinidis completed his return to former club PAOK Salonika when he signed a one-year contract with the option of a second, the club announced on Friday.
The 29-year-old, who has 20 caps, has spent the last three years at Panathinaikos with whom he won the league and cup double in 2003/4.