The 60-year-old Italian has won 15 major honours in his career including the Premier League title and three Champions League titles.
He is attending today’s Premier League match against Arsenal at Goodison as a spectator with the Club’s Owner and Chairman prior to meeting the players and taking up his new role from Sunday.
Ancelotti’s first match in the dugout will be the visit of Burnley to Goodison Park on Boxing Day (Thursday 26 December).
He told evertonfc.com: “This is a great club with a rich history and a very passionate fan base. There is a clear vision from the Owner and the Board to deliver success and trophies. That is something that appeals to me as a manager and I am thrilled at the prospect of being able to work with everybody at the Club to help make that vision a reality.
“I have seen from the performances in the last two weeks that the players are capable of so much. The work Duncan has done is a great credit to him. Strong organisation, strong discipline and the right motivation are some of the key ingredients in football and I’m pleased that he will be part of my backroom team moving forward.”
Marcel Brands, Everton’s Director of Football, said: “Following a rigorous process conducted by all of our Directors, it is a pleasure to now welcome Carlo Ancelotti to Everton. He is one of the finest managers in world football and a proven winner, having achieved a remarkable level of success in each of Europe’s major leagues.
“He is the perfect appointment for us. He embraces our vision for the Club and we are sure that his enthusiasm to take the helm at Goodison together with his tactical abilities and well-renowned man-management will make him successful in this role. This was a clear and exciting decision for the Board to make. It was a unanimous choice and one we were all fully united behind throughout. Carlo has proven time and again, he knows how to build a trophy-winning side and we share the excitement of our fans at the prospect of him leading our team in the years ahead. We’re all greatly looking forward to working with him.”