Carlo Ancelotti [Images] is expected to confirm on Saturday that he will be taking over as Chelsea's new coach this summer.

Sources close to the Italian coach believe he will make the announcement if his AC Milan side clinch a Champions League [Images] place by beating Udinese, The Sun reports.

Ancelotti, 49, was stunned and disappointed by the verbal attack launched on him by Milan owner Silvio Berlusconi this week.

Berlusconi blamed the coach and his tactics for costing AC Milan the Serie A title which will be won by Jose Mourinho's Inter Milan.

That was the final straw for Ancelotti who is understood to have been in touch with Chelsea officials since to confirm he is taking the job at Stamford Bridge [Images].

He will remain at the San Siro for the remainder of the season before joining the Blues next month.

Ancelotti has already been involved in identifying new players for Chelsea and this week he has identified Aston Villa's Ashley Young as a top target.