BUENOS AIRES (AFP) - Jose Pekerman is to be the new coach of Argentina, the country's football association (AFA) president Julio Grondona announced.

Pekerman, 55, takes over from Marcelo Bielsa who resigned on Tuesday.

"I am very flattered that they thought of me," said Pekerman who is a widely respected coach here having led Argentina to the world youth titles in 1997, 1999 and 2001.

Pekerman was offered the job of coach after Carlos Bianchi turned it down on Wednesday.

The vacancy arose when Bielsa surprisingly announced his resignation on Tuesday, just over two weeks after guiding the Argentines to their first ever Olympic title.

Bianchi, who resigned from his post as Boca Juniors handler in July citing family reasons, has never enjoyed close relations to the all-powerful Grondona.