UPDATE 2-Soccer-Santana replaces Parreira as South Africa coach

(Updates with Santana announcement)

JOHANNESBURG, April 21 (Reuters) - Brazil's Carlos Alberto Parreira resigned as coach of 2010 World Cup hosts South Africa for personal reasons on Monday and was set to be replaced by compatriot Joel Santana.

Brazilian club Flamengo, where Santana currently coaches, said the 59-year-old had accepted an offer to step in for Parreira and coach a national side for the first time in his career.

"Joel is transferring to the South African national team after the final of the Carioca championship," Flamengo's football vice-president Kleber Leite said on the club's Web site (http://www.flamengo.com.br).

"He told that me that he will earn in 30 months more than he has earned in the last 30 years......His dream is to coach a national team at a World Cup."

Santana is recognised as a journeyman professional with a good track record in Brazil but little international experience, apart from brief stints with clubs in Saudi Arabia and Japan.

He told reporters at Flamengo's training camp in the mountain retreat of Teresopolis: "I'm happy that I'm being recognised outside Brazil. It shows that my work is not all that bad."

FAMILY REASONS