Manchester City have appointed Manuel Pellegrini as Roberto Mancini's successor.
Pellegrini, who stepped down from his position as Malaga coach at the end of last season, joins the Premier League club on a three-year contract and will take up the role on June 24.
There had been media reports earlier on Friday suggesting that City had delayed the Chilean's appointment as they were hoping to avoid a £3.2million payment to Malaga.
However, the Manchester club appeared to rubbish such speculation by announcing Pellegrini's arrival on their official website later that day.
Pellegrini said in a statement: "I am delighted to accept this hugely exciting opportunity. The club has a clear vision for success both on and off the pitch and I am committed to making a significant contribution.
"Everything is in place for Manchester City to continue to be successful and I am excited to be able to work with such a talented squad, the Executive team and the Board to deliver for fans who are renowned for their steadfast support."
City chairman Khaldoon Al Mubarak was equally thrilled with the appointment, telling the website: "Manuel is a hugely experienced and successful manager with a proven track record. We have been greatly impressed throughout the selection process by his philosophy, his attitude and his commitment to the long term development of Manchester City. I am delighted that he has joined us."
Chief executive officer Ferran Soriano added: "Manuel is a very experienced coach with a recognised ability to get the most out of his players and build cohesive teams. He shares the Cub's approach to football and our ambition to achieve on field success, coordinating with the wider football support teams to ensure natural progression from the Academy to senior level."
Pellegrini has more than 25 years of managerial experience in a career that has seen him take charge of Chilean clubs Universidad Chile, Palestino, O'Higgins and Universidad Catoilica, San Lorenzo and River Plate of Argentina, as well as Villarreal, Real Madrid and Malaga in Spain.
He first came to prominence winning titles in his homeland, as well as in Argentina, before earning himself a move to Europe.
His stock soon rose even higher as he guided Villarreal to the Champions League semi-finals in 2006, before landing the job at Madrid in 2009.
Despite joining during a summer that also saw the arrivals of the likes of Cristiano Ronaldo, Kaka, Karim Benzema and Xabi Alonso at a cost of £225 million, Pellegrini endured a frustrating season and was sacked by the following May.
By the next season he was at Malaga, where he would go on to guide the side into the Champions League for the first time in their history.
Despite financial difficulties, which saw the coach lose key players such as Santi Cazorla, he was still able to steer the club into the quarter-finals of Europe's elite competition last term – a feat he will be expected to repeat at City.