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noufalasharaf,

I just did that and it worked fine! I didn't want to copy the sagetex.sty file directly into my working directory because the Sage installation guide says that is not the best way to handle this.

According to that guide, of the three ways to make SageTeX known to TeX, the third one is the best. And that's what I was doing before. The problem is that it doesn't create the necessary xyz.sagetex.sage file but only a file xyz.sage (which is the one that gives an error message).

Thanks a lot for the answer.