Carlo Ancelotti has been appointed the new manager of Chelsea, the Premier League club said on Monday.
Ancelotti, who announced his departure as coach of AC Milan on Sunday, has signed a three-year-contract and will start on July 1, the English club said in a statement.
"Carlo was the outstanding candidate for the job. He has proved over a long period his ability to build teams that challenged for, and have been successful in, major domestic and European competitions," the statement read.
"We are sure everybody at Chelsea will give him a warm welcome and we are all looking forward to working with him."
Guus Hiddink had taken the role of temporary coach after the dismissal of Brazilian Luiz Felipe Scolari in February.