Real Madrid's Italian coach Carlo Ancelotti will take over as head coach of Brazil's national team for the 2024 Copa America, a source at the Brazilian Football Federation told AFP on Tuesday.
The federation had announced earlier that Fluminense's Fernando Diniz would take charge of the team in the interim period.
Ancelotti has a season remaining on his contract with Real and will take over Brazil in time for the Copa America which will be held in the United States from June 2024.
The former AC Milan and Chelsea coach will become the first foreigner to coach Brazil in almost sixty years.
The last foreign coach of Brazil was Argentine Filpo Nunez who was in charge for one game in 1965.
Among his many successes, the 64-year-old Ancelotti has won the Champions League twice with both AC Milan and Real Madrid.
He has also won domestic league titles in England with Chelsea, Germany with Bayern Munich and France with Paris Saint-Germain as well as with Real and Milan.
Brazil were coached by Tite at last year's World Cup, but he stood down from the role after their elimination at the quarterfinal stage to Croatia.
Ramon Menezes has been in charge of the team on a caretaker basis.
The CBF had earlier issued a statement saying that Diniz would be in charge of the team for the coming year.
"Fernando Diniz will lead the Brazilian team for a year, and I'm sure he will do it with great competence, as always during his professional career," said CBF president Ednaldo Rodrigues in a video statement.
"It is a dream, an honour and a huge pride to serve the national team," Diniz said.
The 49-year-old will be in charge of the six South American qualifying games for the 2026 World Cup that will be played this year, including the clashes with Argentina and Uruguay.
Brazil will start their qualifying campaign in September at home against Bolivia and then away against Peru.