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Gascoigne was appointed manager of the recently founded Portuguese team Algarve United in June 2005, but failed to settle at the club, and left to become manager of the Conference North team Kettering Town on 27 October 2005. His tenure at Kettering lasted just thirty-nine days, and he was dismissed by the club's board on 5 December 2005, along with assistant manager Paul Davis. Later the same day, Gascoigne was arrested over an alleged assault of a journalist outside Hope Street Hotel in Liverpool, but the journalist withdrew his complaint three days later..

Paul's step-daughter Bianca Gascoigne is the latest celebrity to be taking part in the 2nd series of Love Island (previously known as Celebrity Love Island).

In August 2006 Gascoigne visited Botswana on behalf of the FA's international outreach week and played football with the children from the SOS Children's village there .

On 8 November 2006, Gascoigne was arrested on suspicion of causing actual bodily harm to another man in a London nightclub.. He was later released on bail.

Gascoigne will play in a Glasgow Rangers exhibition match to commemorate the anniversary of the 'nine-in-a-row' achievement on July 8th 2007.

He will also be appearing in the Sci-Fi movie 'Final Run' which is scheduled for release in 2008.

On July 13th 2010 he entered rehab for the ninth time.

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