The London side, owned by Russian billionaire Roman Abramovich, ended weeks of speculation by appointing Scolari as successor to the sacked Avram Grant.

The club made the announcement on its Web site soon after the Brazilian guided his team to a 3-1 victory over the Czech Republic at the Euro 2008 finals.

The 59-year-old will take charge following the tournament in Austria and Switzerland, after which he had previously been expected to make a decision about his future.

"Chelsea Football Club is delighted to confirm that Luiz Felipe Scolari will be the club's new manager from July 1, 2008," the club statement read.

"Felipe has great qualities. He is one of the world's top coaches with a record of success at country and club level, he gets the best out of a talented squad of players and his ambitions and expectations match ours. He was the outstanding choice.

"Out of respect for his current role as Head Coach of the Portuguese national team, and to ensure minimum disruption to this work, there will be no further comment from Chelsea FC nor from Felipe about his new role until his employment with us commences."

Scolari, who guided Brazil to the World Cup title in 2002, has been coach of Portugal since 2003.

Grant left Stamford Bridge after Chelsea finished second to Manchester United in the Premier League and also lost to their rivals in the Champions League final.

The Israeli took charge in September 2007 after Jose Mourinho left following a falling-out with Abramovich, but was not able to give the club's benefactor the silverware he so desperately desires.

Scolari was one of the main contenders for the job along with Frank Rijkaard and Roberto Mancini -- sacked by Barcelona and Inter Milan respectively -- after Chelsea were refused permission to talk with AC Milan's Carlo Ancelotti.


CNN