Camacho succeeded Javier Clemente as national team manager in September 1998, after a shock 3–2 loss in Cyprus in a Euro 2000 qualifier. The tide quickly turned under the new boss, who led the side to the final stages where they bowed out to eventual champions France in the quarter-finals. Two years later, Camacho's team lost in the same stages to South Korea, now in the 2002 World Cup. Following the controversial defeat he announced his resignation, being replaced by Iñaki Sáez. Benfica Camacho returned to club action subsequently, being appointed at S.L. Benfica from Portugal on 1 December 2002 in the place of sacked Jesualdo Ferreira. Two years later, his team won the Taça de Portugal against José Mourinho-led FC Porto in extra-time, as well as finishing second in the Primeira Liga. A tough tackler in his playing days, Camacho also showed a human side when he cried profusely after Miklós Fehér died on the pitch, shortly after entering Benfica's match at Vitória de Guimarães. Real Madrid and Benfica return For the 2004–05 season, Camacho returned to Real Madrid on a two-year contract as a replacement to sacked Carlos Queiroz. However, things quickly went wrong again in his second spell after a 3–0 defeat at Bayer Leverkusen in the group stage of the UEFA Champions League, and a 1–0 league loss at Espanyol four days later also in September; shortly after, he resigned and was replaced by assistant Mariano García Remón. Following Fernando Santos' mutual agreement termination of contract with Benfica, after a 1–1 away draw with Leixões S.C. in 2007–08 Portuguese League's opener, Camacho returned to Benfica. However, following a poor string of results, and claiming he was no longer able to motivate the team, he announced he would leave the club minutes after drawing a home match against bottom-placed U.D. Leiria on 9 March 2008. Osasuna After working as co-commentator on Spanish TV network Cuatro during Spain's victorious Euro 2008 campaign (he would also work for the channel during the 2010 World Cup, which ended with the national team's triumph as well), Camacho replaced José Ángel Ziganda at the helm of CA Osasuna on 13 October 2008. On 14 February 2011, following a 1–0 away loss against Real Sociedad that placed the Navarrese inside the relegation zone, Camacho was fired. They eventually finished in ninth position. China national team On 13 August 2011, Camacho took over the