Portugal's prime minister says he has appointed his coalition partner Paulo Portas as his deputy.

Pedro Passos Coelho says the appointment of Portas, who resigned as country's foreign minister last week, patches-up a political rift that had caused turmoil on financial markets.

The deal is still to be approved by President Anibal Cavaco Silva.

Portas' resignation precipitated a crisis that rocked European markets as the government teetered on the verge of collapse in a dispute over austerity measures.

Passos Coelho said late Saturday that Portas was given "responsibility to coordinate economic policies." Portugal received a 78 billion euro ($102 billion) sovereign bailout in 2011.