Xabi Alonso has agreed to become Chelsea's next permanent manager on a four-year deal, with an announcement expected on Sunday.
The former Real Madrid boss was Chelsea's No 1 target and will start work at Stamford Bridge on July 1 in time for pre-season.
Chelsea, currently ninth in the Premier League table, have been looking for a new head coach after sacking Liam Rosenior in April after only three months in charge.
But ex-Liverpool midfielder Alonso will hold the title of manager rather than head coach, in Chelsea's recognition of his experience and the key role he will play in helping develop all aspects of the club.
News of Alonso's imminent appointment emerged shortly after , where interim boss Calum McFarlane was in the dugout.
Alonso's availability had fuelled speculation about a potential Anfield return amid Arne Slot's struggles, but the Dutchman says he expects to remain in charge.
Bournemouth boss Andoni Iraola and Fulham head coach Marco Silva were the other coaches on Chelsea's shortlist, with Iraola understood to have especially impressed.
Crystal Palace's Oliver Glasner, Como's Cesc Fabregas and ex-Flamengo boss Felipe Luis were also considered.
Alonso had been out of work since being sacked by Real Madrid in January, seven months into the job.
But he won the Champions League twice as a player, as well as leading Bayer Leverkusen to an unbeaten Bundesliga-winning season in his first campaign as a coach in 2023/24.
Alonso will become the fifth permanent appointment of the BlueCo ownership era, following Graham Potter, Mauricio Pochettino, Enzo Maresca and Rosenior.
Chelsea believe their latest appointment reflects that lessons have been learned from past mistakes, with Alonso challenged to build a culture as well as a team.
Club chiefs view him as one of the most respected young coaches in European football and believe he has the discipline and calm leadership style, as well as the ability to play in different formations.
Alonso will work with the club's existing sporting directors and ownership group on summer business.
Chelsea are looking to add experience to their squad by signing several ready-made first-team players - including a centre-back in the forthcoming transfer window.
Defeat to City in the FA Cup final means Chelsea could be without European football next season for the second time in the BlueCo era.
An eighth-place finish would secure Conference League qualification, and, while it is unlikely, a sixth or a seventh finish could see them into the Europa League.
But Chelsea chiefs want to compete consistently for the biggest trophies and believe Alonso fits their long-term strategy.
Your Site' Rich Morgan:
Having hung up his boots in 2017 after a glittering and trophy-laden 18-year playing career with Liverpool, Real Madrid, Bayern Munich and Spain, Alonso started out his managerial career coaching Los Blancos' U14s.
The Basque then spent three years with the Real Sociedad B side, before taking over Bayer Leverkusen in October 2022 with the team second bottom of the Bundesliga, guiding them to a sixth-place finish and the semi-finals of the Europa League.
In his first full season in charge at the BayArena, Leverkusen - playing in a 3-4-3 formation - won their first-ever Bundesliga while going the whole campaign unbeaten, setting a new European record of 51 matches without defeat in all competitions along the way as they also claimed a league and cup double.
However, Alonso left Leverkusen after they could only finish runners-up to Bayern Munich in the 2024-25 season, being appointed Carlo Ancelotti's successor as Madrid head coach on a three-year deal that May.
His tenure at the Bernabeu began with defeat to PSG in the semi-finals of that summer's inaugural Club World Cup and despite beating Barcelona 2-1 to move five points clear of their archrivals at the top of LaLiga in late October, a downturn in results coupled with high-profile falling outs with star man Vinicius Junior led to his early departure in January.
Your Site News reporter James Cole at Wembley:
An agreement on a four-year deal comes after weeks of talks between Chelsea and Alonso.
He was always the primary target on a three-man shortlist.
They managed to iron out the sticking points on the agreement, with the deal now finalised.
He is the statement boss that the Chelsea hierachy feel can calm the storm that has been around Chelsea in the last few weeks in terms of a disconnect between the fans, the owners and their business model.
An official announcement could now come as soon as Monday and it's seen as a real positive ahead of a summer where Chelsea need a lot of rebuilding.
Nathan: As a Chelsea fan I've been critical of BlueCo but they deserve massive credit for pulling this off. Welcome to Chelsea, Xabi Alonso.
DanO: Alonso is undoubtedly the best appointment Chelsea could have made. The only question is if the board and sporting directors have learnt their lessons and will cede control...
JP: How have FSG let this happen?! Fair play to Chelsea for getting him but we [Liverpool] had our chance to get him but instead we stick with Slot who is out of depth and is taking us backwards.
Lewie V: Very happy with this appointment based on the Leverkusen job he did. Let the man do his job and Chelsea could be back in business.
F20GHT: Think it's a great appointment but are Chelsea going to get some experienced players in and stop blaming the manager when things go wrong? Buying players for the 'future' doesn't quite cut it anymore.
Shanepancho778: As a Lifelong Liverpool fan I am absolutely gutted hearing this news. I honestly thought it was inevitable that at the end of the season Slot would be gone and Alonso would be swept in straight away to have a full pre-season. He will never manage Liverpool now.