Carlo Ancelotti named Real Madrid manager
Ancelotti was widely reported as the front-runner to replace Jose Mourinho, who has returned to manage Ancelotti's former club Chelsea, at the Bernabeu despite being under contract with French champions Paris Saint-Germain, Telegraph.co.uk reported.
Real have not confirmed the length of contract handed to Ancelotti, or if any compensation has been paid to PSG, but a statement published on the club's website read: "Carlo Ancelotti will coach Real Madrid next season.
"The Italian has experienced success in every country where he has managed and arrives in the Spanish capital after being named coach of the season in France."
Meanwhile, Ancelotti's former club confirmed: "Paris Saint-Germain is delighted to announce the appointment of Laurent Blanc as coach for the next two years.
"He will take charge of the squad on July 1, 2013, for the start of preseason training."