Brazil named by FIFA as the host nation for the 2014 World Cup on Tuesday is setting aside N12.5billion (about £500m) for the updating of its stadia including the Maracana that hosted the 1950 World Cup final.
The South American country was the only country that bid to host the tournament, which was due to be staged on the continent under FIFA’s rotation system.
The other South American nations agreed to back Brazil that has won the World Cup a record five times as their only candidate after Colombia withdrew.
Ricardo Teixeira, the president of the Brazilian football association, and also a member of FIFA’s executive committee, said: "The World Cup goes far beyond being a sporting event, it will be a tool for social transformation and leave a lasting legacy for the Brazilian population.
"Brazil will benefit from hosting the World Cup but there will also be benefits for the world from Brazil hosting the tournament."
Zagallo, who won the World Cup as a player in 1958 and 1962, as a coach in 1970 and as an assistant coach in 1994, believes the country has enough time to get ready.
"In seven years Brazil will have new stadiums and we will fix those that need to be fixed," he added.
"FIFA has been here and has seen it is possible to be done."
Brazil hosted the tournament in 1950, when they were beaten 2-1 in the final by rivals Uruguay.
FIFA president, Sepp Blatter, said before the announcement: "Brazil is more than just a country, it is a sub-continent.
"Perhaps I should not say this, but I was very impressed with the country’s bid."
Women’s world champions Germany will host the 2011 World Cup after beating off competition from Canada.