25/06/2013 07:46 BST | Updated 25/06/2013 11:53 BST

Carlo Ancelotti New Real Madrid Boss, Laurent Blanc Takes Over At PSG

Real Madrid have confirmed Carlo Ancelotti as their new coach with Laurent Blanc replacing the Italian at Paris Saint-Germain.

Hailed as an "institution" by Madrid, Ancelotti has inked a three year contract after two years in Paris.

The 54-year-old won two European Cups as AC Milan manager in 2003 and 2007, and will be tasked with bringing La Décima to the Santiago Bernabéu.

Real have not won the Champions League since Zinedine Zidane's exquisite volley at Hampden Park in 2002 and Ancelotti arrives in the Spanish capital after three successive semi-final eliminations for Los Blancos under José Mourinho.

Blanc, who guided Bordeaux to the 2008-09 Ligue title, succeeds Ancelotti a year after he stepped down as France coach.

Forty-seven-year-old Blanc has signed a one-year deal with PSG, with an optional year extra dependent on results.

Les Bleus won just one of their four European Championship matches in Ukraine and Poland and his two-year tenure was blighted by Mediapart's 2011 story, which claimed the French Football Federation had been attempting to secretly put in place a race-quota system in its national academies.

PSG reached the quarter-finals of the Champions League this year, unluckily bowing out to Barcelona.

Ancelotti delivered the Parisiens their first Ligue 1 title in 19 years having narrowly finished second to Montpellier in 2012.