Bayern Munich appoint Carlo Ancelotti as Pep Guardiola successor in 2016

Bayern Munich have confirmed that Carlo Ancelotti will become their new coach at the end of the 2015-16 season after Pep Guardiola decided not to renew his contract with the Bundesliga champions.

Guardiola, 44, is approaching the end of his three-year contract and had promised there will be "clarity" on his plans next week, after club CEO Karl-Heinz Rummenigge said there would be a final discussion after the game against Hannover on Saturday.

Rummenigge told BILD: "We are thankful to Guardiola for all he gave our club and hope to celebrate more success in the current season. With Ancelotti we have another very successful coach coming to Bayern. We are looking forward to working together."

He added on the club website: "We are grateful to Pep Guardiola for everything he has given our club since 2013. I am convinced that Pep and our team will now work even more intensively towards achieving our major sporting goals -- especially as it is now confirmed that Pep is to leave FC Bayern."

Former Real Madrid boss Ancelotti -- the only manager to have ever won three Champions League trophies -- had been tabbed to replace Guardiola at Bayern if the Catalan coach decided against prolonging his stay in the Bundesliga, and has agreed to a three-year contract beginning on July 1, 2016.

"Carlo Ancelotti has enjoyed success everywhere as a coach and has won the Champions League three times," Rummenigge told the club website. "Carlo is a calm, balanced expert, who knows how to deal with stars and favours a multifaceted style of play -- we were looking for this, and we have found it. We are looking forward to working with him."

Ancelotti added: "I am very honoured that I will be coach of the great club FC Bayern from next season."

The Italian was first linked with the job at the Allianz Arena in October, and former Bayern coach Ottmar Hitzfeld told Bild before the announcement: "Ancelotti would be a great fit at FC Bayern. He has been successful everywhere, has won the Champions League three times.

"At this highest level it's important that players know he can do it. And it's also important for the public image. A Bayern coach has to have a high reputation."

Hitzfeld, who retired from coaching following the 2014 World Cup, praised Guardiola as a "pioneer" and "revolutionist" who "created a new football" with a three-centre-back defence.

Of Ancelotti, who has twice won the Champions League with AC Milan and once with Real Madrid, Hitzfeld said: "He doesn't stick to his system. He can adjust the style of play to the opponents."

The German cited the 2014 Champions League semifinal between Bayern and Real, who stormed past the Bavarians with a 4-0 second-leg win at the Allianz Arena, insisting: "He played attacking football at Real, but waited for counterattacks against Bayern."

Ancelotti was recently also praised by former Bayern midfielder Toni Kroos, who worked under the Italian at Real last season, saying: "He was able to mix the success factors the best: The tactical idea, the human component, which especially at Real Madrid is not easy."

Earlier this week, Hitzfeld said Guardiola will be appointed as Manchester City manager next summer.