
Diaz had been River's first choice for the position, but after a meeting with the San Lorenzo board, he was persuaded to stay with Los Cuervos until next summer.
It is thought that Diaz was offered a contract of 1,700,000 dollars, plus an additional 500,000 if he can take San Lorenzo to Copa Libertadores glory in 2008.
As part of the agreement, San Lorenzo will not stand in Diaz's way if he wishes to move away from the club next summer.
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