Vladimir Petkovic exit talks leave Algeria facing costly contract settlement

The Algerian Football Federation (FAF) could be facing a compensation bill far greater than initially expected as it moves towards ending Vladimir Petkovic’s time as national team manager.

Initial reports suggested Petkovic would receive three months’ salary as part of an agreement to terminate his contract. However, information reported by journalist Mohamed Nedjari indicates that the final settlement could instead be worth between nine and 12 months of wages.

Negotiations between Petkovic and the FAF are understood to have been difficult. The Swiss-Bosnian coach had a contract running until 2028 after signing an extension shortly before the 2026 World Cup. According to the same report, he initially asked for compensation equivalent to two years of salary in return for agreeing to leave.

The federation is said to have responded with an offer of six months’ pay. Petkovic then reportedly reduced his demand to one year’s salary before both sides reached a compromise understood to be worth between nine and 12 months.

That figure would represent a significant increase on the three months’ compensation discussed earlier.

The situation has raised questions over a decision that now appears to have become a major financial setback for the FAF. Several months before the World Cup, the federation opted to extend Petkovic’s contract and increase his salary, a move intended to demonstrate confidence in his leadership.

Instead, that commitment could now leave the organisation facing a bill of several million euros.

Petkovic’s position became increasingly difficult to defend after Algeria’s disappointing World Cup campaign. The team were eliminated prematurely, while the manager lost the confidence of a section of supporters, several former internationals and part of the squad.

In the days before the reported agreement, the FAF had considered a number of possible outcomes. Petkovic had appeared willing to remain in charge while accepting the federation’s conditions, including a major restructuring of his coaching staff and the appointment of Algerian assistants.

Those discussions ultimately appear to have led towards an amicable separation rather than a continuation of his tenure.

The official announcement of Petkovic’s departure is now expected to be a formality. The FAF will need to appoint a successor quickly, with Algeria preparing for the Africa Cup of Nations 2027 qualifying campaign.

The next manager could come from Spain or Portugal. Jose Peseiro, the former Nigeria manager, has also been mentioned as a possible candidate.

When Walid Sadi’s federation extended Petkovic’s contract shortly before the World Cup, it believed the decision would provide stability for the national team. Two months later, the same agreement could instead prove to have created a major financial burden.

The figures surrounding the settlement have not been officially confirmed by the FAF, but the reported range of nine to 12 months’ salary is considerably higher than the amount initially circulating.