TonyMarshall/Empics

Ancelotti's twin Champions League wins make him an outstanding manager.

The Italian succeeds Hiddink, whose short stint at Stamford Bridge ended after Saturday's FA Cup final victory over Everton. Ancelotti, who has long been linked with the Stamford Bridge post, left AC Milan by mutual consent on Sunday.

A statement on their 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 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.''

Ancelotti, 50 later this month, twice won the Champions League, in 2003 and 2007, and the Serie A title in 2004 during his eight years in charge at Milan. He has previously coached at Reggiana, Parma and Juventus.

His track record of success dates back to his playing days when he also won two league titles and two European Cups with Milan and he becomes the fourth Chelsea manager in 21 months following Jose Mourinho, Avram Grant, Luiz Felipe Scolari and Hiddink.

Ancelotti told Chelsea TV: ''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.''

Ancelotti will be charged with replicating his past European successes at Chelsea while also re-establishing the club on top of the Premier League. 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.''

But there are question marks over Ancelotti, not least over his lack of English, given the problems that appeared to bring when Scolari was in charge.

Ancelotti said: ''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.''