Having represented both Sporting and Porto as a professional player, he went on to have a lengthy managerial career that would last more than 20 years in four different countries (in this capacity, he also worked with both clubs).
Just ten days later, Inácio moved to Iran, with Foolad FC, signing until June. Despite Foolad's relegation to the second division he signed a contract extension for the next season; in May 2008, he took the reins of G.D. Interclube in Luanda, Angola.
Inácio was sacked in the summer of 2009 and, on 13 September, he reached an agreement with Associação Naval 1º de Maio for a return to Portugal, in a one year-deal. At this time in the season, Naval had just one point from four games and dismissed Ulisses Morais, but ultimately easily retained its top division status, finishing in eighth position.