Briefs 3-Werder refuse to release Brazil's Diego for Olympics

July 14 (Reuters) - Sports news in brief from around the world on Monday.

Olympics - Playmaker Diego will not be released for the Olympics even though the 23-year-old was named in the Brazil squad last week, Werder Bremen sporting director Klaus Allofs said.

Allofs said the reason for the refusal is that the Olympics are not part of FIFA's official schedule. "There is at the moment no legal foundation that says the clubs have to release their players. So I'm not expecting any reaction from FIFA."

He also said Werder Bremen refused to release Serbia international Dusko Tosic for the Olympics. "We made it clear to him (Diego) that we are not going to release him due to the legal situation," Allofs was quoted saying on German sport news agency SID.

Diego said: "Obviously I'd like to take part in the Olympics. It's a dream of mine. But Werder won't release me."

Motorcycling - Spanish MotoGP rider Dani Pedrosa will have to remain under observation in a Barcelona hospital for the next 32 hours to see whether he can race in the U.S. Grand Prix at Laguna Seca next weekend, doctor Xavier Mir has said.

The Honda rider suffered injuries to his left hand and right ankle after a high speed crash put him out of the German Grand Prix on Sunday. Pedrosa is second in the standings behind MotoGP championship leader Valentino Rossi.

Soccer - The mayor of a southern Italian town has apologised to former national team coach Roberto Donadoni, who had a bucket of water thrown over him by an unknown assailant at a restaurant last week.

Lello Di Bari, the mayor of Fasano, told reporters the act was "certainly not civil".

Donadoni lost his job after the lacklustre world champions were beaten on penalties by eventual winners Spain in the Euro 2008 quarter-finals last month. World Cup-winning coach Marcello Lippi has returned to replace him.

Soccer - Italian Serie B side Messina are on the verge of dropping out of the division because of financial problems, the club website (www.mondomessina.it) said.

Soccer - Portuguese champions Porto have agreed to sign Romanian defender Cristian Sapunaru from Rapid Bucharest, the club said.

The 24-year-old had moved on a five-year contract for 2.5 million euros ($3.93 million).

Rugby - Brian Smith has been named as England's new attack coach after the Rugby Football Union secured his release from his role as director of rugby at London Irish.

The Australia-born 41-year-old, who played internationally for Ireland and Australia, will work alongside defence coach Mike Ford and forwards coach John Wells under Martin Johnson.

"Brian is a top attack coach and I'm sure he will be a real asset to us. His appointment finalises the senior coaching team for next season," Johnson said in a statement.

Soccer - Sun-baked turf in Cyprus has forced the relocation of Tuesday's Champions League first qualifying round, first-leg match between Anorthosis Famagusta and Armenian side Pyunik Yerevan.

It has been switched from Larnaca to the GSP Stadium in Nicosia after a drought that has sapped water reserves, triggering emergency rationing and the import of water in tankers from Greece. The winners of the tie face Austrian champions Rapid Vienna in the second qualifying round.

(Editing by Pritha Sarkar)