Carlo Ancelotti has been confirmed as Real Madrid's new manager, with Paris Saint-Germain announcing that Laurent Blanc will succeed the Italian on a two-year deal.
Ancelotti has long been touted for the Madrid job as the side look to a new chapter post Jose Mourinho. But PSG fought hard to keep hold of the manager who brought them the title last season and guided them to the quarter final of the Champions League.
The French side insisted that until they found a replacement for Ancelotti he wouldn't be allowed to move to the Spanish capital, but now Blanc has agreed to come back into management close to a year after leaving his post as coach of the French national team.
Blanc is highly thought of in France, particularly for his achievements with Bordeaux and in the rebuilding of the France national side between 2010-12.
"Paris Saint-Germain is delighted to announce the appointment of Laurent Blanc as coach for the next two years. He will take charge of the squad on 1 July 2013 for the start of pre-season training," a club statement said.
"The board of Paris Saint-Germain has given Laurent Blanc the mission to build on last season and to continue the club's ascendency towards the summits of the European game."
Meanwhile, Madrid will be satisfied to have gotten their most desired target, with Ancelotti holding a CV full of achievements across Italy and England. The 52 year old will join the club on a three year contract.
"Familiar with the pressures of managing the great teams of the continent (Juventus, Milan, Chelsea and PSG) the Italian is a guarantee to direct an exciting project," the side said on their website. "Experience, success and reliability in all countries where he has trained endear the Italian, who lands in the capital of Spain after being elected the best coach of the season in France."
Blanc will no doubt be expected to lead PSG to more domestic glory, while making progress in the Champions League as well as fighting off competition from big-spenders Monaco. Meanwhile, for Ancelotti, the expectations will be even higher, with Madrid looking to make their way into the Champions League final after losing on three consecutive occasions in the semi-finals.
Transfer targets will now become a lot more concrete for the man who was sensationally sacked by Chelsea after bringing them their first Premier League and FA Cup double, with Gareth Bale believed to be top priority as he makes plans to take back dominance over Barcelona.