Chelsea have confirmed that former Milan boss Carlo Ancelotti will take over as the club’s new manager.

The 49-year-old Italian left Milan on Sunday after finishing third in Serie A and has now been confirmed as Guus Hiddink’s successor.

A statement on the club’s official website read: “Chelsea Football Club is delighted to announce that Carlo Ancelotti has agreed to become our new manager.

“He has signed a three-year contract and will start on July 1, 2009.

“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 has 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.”