Carlo Ancelotti will be named as the new Chelsea boss next week according to reports in the English media.

The AC Milan coach is understood to have agreed a three-year deal with the Stamford Bridge outfit, a contract that will net the Italian a staggering 15million pounds.

The Daily Mail newspaper has announced that Ancelotti's arrival could happen as early as Monday if he is sacked by his current employers after the Serie A giants' final league game away at Fiorentina on Sunday.

The latest revelations come in the same week as Ancelotti revealed that he held talks with Blues owner Roman Abramovich last year.

In his autobiography - 'Preferisco La Coppa' (I Prefer The Cup) - the 49-year-old described two meetings he claims to have held Abramovich.

Ancelotti admitted he found himself plotting the best way forward for the Stamford Bridge club.

"I confess that at certain points in 2008-09 I watched my DVDs of John Terry, Frank Lampard and Didier Drogba," said the Italian, who won two European Cups with AC Milan.

"I was already the coach of the boys on paper."

Ancelotti also proffered the names of two players - Liverpool midfielder Xabi Alonso and Bayern Munich winger Franck Ribery - who he thought could help to turn Chelsea into the attractive, winning side the Russian craves.

"President, your team is very physical, you have to put more quality in the middle of the pitch," Ancelotti claims to have told Abramovich.

"I gave him two names, Franck Ribery and Xabi Alonso.

Ancelotti will take over from Dutchman Guus Hiddink who helped Chelsea win the FA Cup on Saturday thanks to a 2-1 win against Everton.