Paciencia replaces Jose Luis Oltra, who was fired at the end of 2012 with the club bottom of the league.
Paciencia led Braga to the Europa League final in 2011, but was fired by Sporting Lisbon last season.
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The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.
Five English clubs will compete in the last sixteen of the Champions League for the first time ever as Liverpool, Manchester United, Manchester City, Chelsea and Tottenham face some difficult away matches.