TVE of Spain have confirmed that Spain will be taking part in Eurovision 2014. They have however not given any detail to how they will select their entrant for Eurovision, apart from that the decision will be taken in the coming weeks.
The article on the TVE website also welcomes the return of Portugal to the contest after their absence from the 2013 contest. Spain finished in 2nd last place in Malmo, scoring just 8 points.
Source: TVE
