Ancelotti targets Europe

Ancelotti, 49, who announced his departure as coach of Milan on Sunday, has signed a three-year-contract and will start on July 1.

The former Italy international the Champions League twice as a player and twice as a manager with Milan, and said his aim was to bring the European Cup to Stamford Bridge.

"For me, the Champions League is a beautiful sensation because when I played I won two times in 1989 and 1990 and it was a fantastic achievement," he said.

"And it was the same as a coach in 2003 and 2007. Champions League, for me, is the best competition in the world and all teams want to win it.

"Five semi-finals in six years is a beautiful score (for Chelsea) but now we need to win."

Earlier, Chelsea confirmed Ancelotti's appointment two days after interim manager Guus Hiddink won the FA Cup in his final game.

"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," a club statement read.

"We are sure everybody at Chelsea will give him a warm welcome and we are all looking forward to working with him."

Ancelotti had great success as a player and coach with Milan, winning two Champions Leagues and a Serie A title during his eight years in charge at the San Siro.

Hiddink had taken the role of temporary Chelsea coach after the dismissal of Brazilian Luiz Felipe Scolari in February.

Hiddink, Russia's national team coach, completed his three-month stint at Stamford Bridge by winning the FA Cup on Saturday with a 2-1 victory over Everton.

"They've (Chelsea) had too many changes and they recognise that themselves," Hiddink said after the Wembley win. "Stability is needed now."

They had that under Jose Mourinho but after his surprise departure in September 2007, the stability and the trophies dried up.

Avram Grant took them to within a missed John Terry penalty of Champions League glory and also to a Premier League runners-up spot but left soon after.

Russian billionaire owner Roman Abramovich's desperate need for another big name appointment led to Scolari but the Brazilian World Cup winner left after Chelsea's assault on the Premier League title was seemingly fizzling out.

Dutchman Hiddink revived Chelsea and they finished third in the Premier League, reaching the semi-finals of the Champions League before their FA Cup success.