Carlo Ancelotti has been named as Chelsea's new manager on a three-year contract at Stamford Bridge, commencing July 1st.
A statement on the club's website said: "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.
"He also had a highly successful playing career in those competitions and therefore brings unparalleled all round experience to the job.
"We are sure everybody at Chelsea will give him a warm welcome and we are all looking forward to working with him."
The 49-year-olds appointment is Chelsea’s fifth manager in less than two years following Jose Mourinho, Avram Grant, Luiz Felipe Scolari and Guus Hiddink.
Speaking to Chelsea TV he said: "Milan for me was a great experience. For five years I played with a great team - we had a lot of success - and eight years to train a great team.
"Now I think it is time to change and Chelsea for me was a great opportunity, a great team.
"Now I think it is the right moment for a new challenge and I want to put all my energy for Chelsea."
The Champions League title is the only trophy Chelsea have not won since Roman Abramovich took over at Stamford Bridge.
"There will be the same pressure because Chelsea are a great team in Europe," Ancelotti added. "They want to win all the competitions.
"For me the Champions League is a beautiful sensation. When I played I won it two times, it was a fantastic moment and the same thing when I was a coach in Milan.
"The Champions League for me is the best competition in the world."
Ancelotti continued: "For me (English) is not easy but I want to learn and I want to improve.
"I have the time and when we start the season I will speak well. It is important for me to speak with the players, the team, the assistant and all the operators that will work with me."
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