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.

FACTBOX

Born: 10 June, 1959 at Reggiolo, Italy

* A midfielder for Parma, AS Roma and Milan, Ancelotti plays 26 times for Italy including at the 1990 World Cup. * Becomes coach of Serie B Reggiana in 1995 and a successful season heralds a move to Parma, where he achieves a second place finish in Serie A in his first campaign.

Moves to Juventus in 1999 but fails to match the success of previous boss Marcello Lippi and departs in 2001. Takes over from Fatih Terim at AC Milan in 2001. Wins two Champions Leagues and a scudetto but they suffer a poor 2007/08 season, finishing fifth in Serie A and missing out on the Champions League.

Milan back their boss, buying Ronaldinho and re-signing Andriy Shevchenko, but they start the 2008-09 season with inconsistent performances.

Ancellotti states he would like to manage Italy in the future and says AS Roma is the only other Italian club he would coach before rampant media speculation he will join Chelsea.

May 31, 2009, he announces he is leaving Milan after guiding them to third spot in Serie A. Signs a three-year contract as manager of Premier League club Chelsea a day later.

HONOURS AS COACH

1 League title, 2 Champions Leagues, 2 UEFA Super Cups, 1 Coppa Italia 1 Italian Supercup, 1 World Club Cup.