Real Madrid have appointed Italian Carlo Ancelotti as their new coach on a three-year contract, the Spanish club said on Tuesday. The former Paris St Germain manager will be presented on Wednesday and will replace Jose Mourinho who left at the end of last season to join Chelsea. "Familiar with the pressures of managing the great teams of the continent (Juventus, AC Milan, Chelsea and PSG) the Italian is a guarantee to direct an exciting project," Real said on their website. Ancelotti, 54, has been linked with the post since Mourinho's departure and had asked to leave PSG but the deal was reportedly held up until the French champions found a replacement. PSG announced they had agreed a two-year deal with former France coach Laurent Blanc at the same time as Real made public their agreement with Ancelotti. Spanish media have reported that Real will pay PSG around four million euros (3.3 million pounds) in compensation for the year's contract he still had left with the French club.