Milan - Carlo Ancelotti has been appointed coach of Italian club Napoli on a three-year deal, the Serie A side confirmed on Wednesday.
"Napoli are happy to announce agreement has been reached with coach Carlo Ancelotti to lead the first team for the next three seasons," the club said in a statement.
Ancelotti - who was sacked by Bayern Munich last September - replaces Maurizio Sarri who led the club to second in Serie A behind Juventus this season.
The former Chelsea, Real Madrid and Bayern Munich boss is reported to have agreed a deal worth €6.5 million per year.
"I am really happy and honoured to be the coach of a team from such a unique city with such incredible fans. Forza Napoli always," said Ancelotti in a message posted in four different languages - Italian, English, French and Spanish.
It will be Ancelotti's first job in Italian football since leaving AC Milan in 2009 after leading the club to a Scudetto and two Champions League titles.
Italian Ancelotti hammered out a deal Wednesday after a series of meetings with Napoli president Aurelio De Laurentiis in Rome.
De Laurentiis later confirmed Sarri's departure in a brief post on Twitter.
"I'd like to thank Maurizio Sarri for his valuable contribution to the Napoli cause," De Laurentiis said.
"He brought joy and prestige to Naples and Napoli fans all over the world with an entertaining brand of football that drew praise from all quarters. Well done, Maurizio -- Aurelio De Laurentiis."
Ancelotti has won three Champions League titles as well as the league in Italy, France, Germany and England.
His son Davide and his son-in-law Mino Fulco will also be on the Napoli coaching staff.
Sarri, who has spent the past three seasons at the San Paolo Stadium, has two more years remaining on his contract which runs until 2020.
The 59-year-old former banker guided Napoli to second place in Serie A for the second time since taking over, and this season they achieved a club record 91 points in a season.
But the club's film producer boss De Laurentiis lost patience with Sarri's indecision over his future, after pushing the champions all the way this season before finishing four points behind Juventus to miss out on a first Serie A title since 1990.
According to Sky Sports Italia, Zenit have invited the Napoli coach to Russia to see Saint Petersburg and their training facilities.
The Russian club have been without a coach since Roberto Mancini returned to take over the Italian national team, and in addition to stumping up for €8 million release clause and are also willing to offering a contract worth six million euros per season plus bonuses.