Real Madrid have announced Carlo Ancelotti as their new manager, with Laurent Blanc replacing the Italian at Paris Saint-Germain.
Madrid have been seeking a new boss after Jose Mourinho's departure for his former club Chelsea last month, and Ancelotti had made it clear to PSG he was keen to join the Liga giants.
PSG were reluctant to lose the former Chelsea manager, yet were subsequently linked with a number of coaches, including Tottenham's Andre Villas-Boas and Russia's Fabio Capello.
Recent reports strongly linked ex-France boss Blanc with the post, and on Tuesday, in tandem with Real's announcement, he was confirmed as Ancelotti's successor.
Blanc jetted into the French capital late on Monday evening, and after spending the night in a Parisian hotel along with his agent, Jean-Pierre Bernes, signed a two-year contract at the Parc des Princes, while Ancelotti has penned a three-year deal at Madrid and will be unveiled at a press conference on Wednesday.
A statement from Real read: "Carlo Michelangelo Ancelotti will coach Real Madrid next season. The Italian has experienced success in every country where he has managed and arrives in the Spanish capital after being named coach of the season in France."
Ancelotti, who has previously managed the likes of Juventus and AC Milan, took over at PSG at the end of 2011 and he led the affluent side to the Ligue 1 title last season.
Ancelotti's first task after being presented will likely be to clarify the role to now be played at the club by his former playing charge Zinedine Zidane, who president Florentino Perez first suggested would have overall control of football matters in a director of football role, but has more recently said would have a more hands-on position as a coach on the training ground.
The coming days could also see more comings and goings among the Madrid playing-staff, with Malaga attacker Isco and Napoli striker Edinson Cavani among those tipped to come in, and Gonzalo Higuain set to leave for either Arsenal or Juventus.
Blanc, meanwhile, has been out of work since leaving his job as manager of the French national team last summer after his contract came to an end, having previously impressed at Bordeaux as he won the league title.
"PSG are happy to announce the arrival of Laurent Blanc as coach for two years. He'll take charge of the team with his staff from the start of pre-season training on 1 July," a PSG statement read.
"The mission assigned by the PSG board to Laurent Blanc is to continue down the path started last year, and to steer the team towards the European summits."
There has been no confirmation as to the make-up of Blanc's backroom staff, though his assistant at both Bordeaux and the French national team, Jean-Louis Gasset, 59, is widely expected to be named his No. 2.