In February 2020, Paulo Sérgio became the second manager of second-from-bottom Portimonense S.C. in the Portuguese top-tier campaign. Though he improved their performance, earning himself the Manager of the Month award for June, the Algarve team were relegated on the final day; he voted to stay with them even before they were restored to the league as a result of Vitória de Setúbal's irregularities.