The 39-year-old had been at Paulista club Portuguesa and it was thought the stopper would hang up his gloves at the end of the 2012 season. But Dida insists he still has plenty left in the tank and is ready for a fresh challenge.

"I never thought about retiring. My objective is to keep playing.Since returning to Brazilian football I have trained hard and prepared myself well. I can still do a good job," he said.

The ex-international also expressed his satisfaction at returning to a 'big' club. After finishing third in the 2012 Brazilian championship, Gremio will compete in the Copa Libertadores, the South American Champions League, after the turn of the year.

"I am very happy to be back at a big club who can compete for titles.I' m 39 now and I didn' t expect this opportunity to arise again." He said.

Dida was part of the Brazil squad that won the 2002 World Cup, the nation' s fifth and, to date, last triumph in the competition. He has made 91 appearances for his country.