São Paulo State Championship and in fourth place of the Série A. He continued with Santos in 2007 and won the São Paulo State Championship again. He also saw Santos through the semi-finals of the 2007 Copa Libertadores, winning all the matches in the group stage and eliminating strong teams, such as Caracas in the round of 16 and América in the quarter-finals, before losing to Grêmio in the semis. Later Luxemburgo finished second in the Série A. In both years, 2006 and 2007, he led Santos to a Copa Libertadores berth. Palmeiras return At the end of 2007, Luxemburgo left Santos. He signed with Palmeiras in 2008, and won the São Paulo State Championship for the third consecutive time. With Palmeiras he was eliminated from the Sudamericana by Argentinos Juniors and from the Brazilian Cup by Sport Recife the eventual champions. In the 2008 Série A he reached fourth place with Palmeiras in a very competitive season, earning the club a spot in the Libertadores. Luxemburgo remained with Palmeiras in 2009. He managed the team to a successful campaign in the São Paulo State Championship but lost to Santos in the semi-finals. In the Copa Libertadores he conquered a place in the Round of 16 by defeating Colo-Colo 1–0 in Santiago, with Cleiton Xavier scoring a last minute long-range goal in the angle of Colo-Colo's goalkeeper. Palmeiras defeated Sport Recife on penalties in the Round of 16, but were eliminated by an away goal from Nacional from Uruguay drawing both matches, by 1–1 at home and 0–0 away. In the 2009 Série A Luxemburgo started well in the competition, but after an incident involving young striker Keirrison, Luxemburgo was dismissed from Palmeiras in the seventh round of the competition. Santos return He was re-signed as Head Coach of Santos after a one and a half-year absence on 17 July 2009 and on 7 December 2009 the coach quit Santos, finishing 12th in the league, to sign with Atlético Mineiro. Flamengo (3rd spell) / Grêmio On 5 October 2010, Vanderlei Luxemburgo was named as a new head coach of Flamengo, and managed the club until February 2012. On 21 February 2012, it was announced that Luxemburgo was taking charge of Grêmio Foot-Ball Porto Alegrense until 31 December 2012. On 29 April 2013, after getting involved in a fight in the game between Grêmio and Huachipato for the Libertadores Cup, Luxemburgo