The 49-year-old Italian, who had been linked to the Chelsea post for weeks, signed a three-year contract a day after quitting as coach of AC Milan.

Ancelotti succeeds Guus Hiddink, who led Chelsea on a caretaker basis this season after the dismissal of Luiz Felipe Scolari. The Blues finished third in the Premier League and won the FA Cup. Ancelotti won two Champions League titles and one Serie A championship during his eight years as Milan coach. Chelsea won two Premier League titles under Jose Mourinho, but has never won the Champions League — Russian owner Roman Abramovich’s No 1 ambition.

“There will be the same pressure because Chelsea and Milan are great teams in Europe and they want to win all the competitions, so I think there will be the same pressure,” said Ancelotti.

Ancelotti won the European Cup twice as a player with Milan in 1989 and 1990, and the Champions League twice as coach in 2003 and 2007. “Champions League for me is the best competition in the world and all want to win,” he said. “Chelsea have a great record — five semi-finals in six years is a beautiful score but now we need to win.”

Ancelotti, who will start work on July 1, is the latest Chelsea boss in a turbulent era following Jose Mourinho, Avram Grant, Scolari and Hiddink. “Carlo was the outstanding candidate for the job,” Chelsea said in a statement. “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.”

Ancelotti announced his departure from Milan on Sunday after the club beat Fiorentina 2-0 in the last game of the season to finish third in Serie A and secure a spot in next season’s Champions League. “Milan for me was a great experience,” he said. “We (had) a lot of success, eight years to coach a great team but now I think it’s time to change and Chelsea for me was a great opportunity, a great team.”