Merk: German referee Markus Merk has decided to return to work after mulling retirement in the wake of a disappointing World Cup. Merk, who made several controversial calls in group stage games, in July told the head of officiating of the German football association Volker Roth that he needed a break. Merk, 44, missed the start of the Bundesliga season. "I recently got a standing ovation from my colleagues one evening at a seminar and I knew then that the captain should continue," Merk said.

Thuram: France defender Lilian Thuram is to continue playing for his country after holding talks with national coach Raymond Domenech. Domenech spoke with Thuram, 34, and Claude Makelele, 33, in an effort to convince them to continue their international careers. Today, he will unveil his squad for France's first two Euro 2008 qualifying matches.

Lyon: Lyon have signed Racing Lens midfielder Alou Diarra on a four-year contract. The transfer fee is estimated to be about seven million euros. Diarra, 25, will replace Mali's Mahamadou Diarra who completed his move to Real Madrid this week. Alou Diarra is considered to be one of the most promising French players. He has 11 caps and made a convincing appearance during the World Cup final when he replaced injured Patrick Vieira.

Larsson: A Swedish public prosecutor has dropped an investigation into an incident involving striker Henrik Larsson. Larsson, now playing back home for Helsingborg, was caught on television delivering what looked like a punch to Elfsborg's Jon Jonsson. The Swedish Football Association is to consider the incident at a meeting tomorrow.

Local ally: Germany coach Joachim Loew has named little-known former third division coach Hans-Dieter Flick to be his assistant. Like Loew and his predecessor Juergen Klinsmann, who both speak with a strong southern German accent, Flick hails from the same part of southwestern Germany and coached third division side TSG Hoffenheim for five years before he was sacked in 2005. Flick, 41, was a midfielder who played 148 matches for Bayern Munich and scored six goals between 1984 and 1990. He later played 44 matches for Cologne before retiring in 1993. Widely known as "Hansi Flick", he never played for Germany.

Extra Cash: The winner of this season's Champions League could earn up to 100m euros on top of UEFA prize money and tournament gate receipts. Increased sponsorship, extra television revenue, higher attendances and inflated player values look set to swell the victorious club's coffers long after they lift the trophy in Athens on May 23, a study showed. UEFA says the successful club could receive as much as 40m euros in prize money.

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