MADRID (AP) -- Carlo Ancelotti was hired as Real Madrid's coach Tuesday, succeeding Jose Mourinho after weeks of speculation. He received a three-year contract and will be introduced Wednesday as coach of the Spanish power.
Ancelotti came from Paris Saint-Germain, where he was replaced on the same day by former France coach Laurent Blanc.
The signing ends weeks of negotiations between Madrid and PSG. It remains Madrid President Florentino Perez's driving ambition to reassert his club's reputation after watching the ascent of rival Barcelona in recent seasons.
Mourinho broke Barcelona's grip on the domestic league for one season, but was unable to win for Madrid an elusive 10th Champions League.
Ancelotti's first task will be to nail down his squad, with striker Gonzalo Higuain likely leaving and the club said to be trying to lure Tottenham winger Gareth Bale after losing a bidding war with Barcelona for Neymar.
Ancelotti also must resolve three problems inherited from Mourinho: find a way to break Barcelona's hold on the Spanish league; win the Champions League after Madrid lost in the semifinals for three straight years; and decide if he returns goalkeeper and captain Iker Casillas to his starting role or continues to favor newcomer -- and Mourinho's preferred keeper -- Diego Lopez.
Madrid said Ancelotti has been "elected best coach in all leagues where he has coached: Italy, England and France."
He led Chelsea, the club Mourinho now coaches, to the English Premier League title and FA Cup in 2010, and had his most successful tenure at AC Milan, where he coached it to two Champions League crowns in 2003 and 2007, and the Serie A title in 2004. He also coached at Italian clubs Juventus, Parma and Reggiana.
As a player, Ancelotti won the European Cup for Milan in 1989 and 1990.
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