Manchester City have announced the appointment of Enzo Maresca as the club's successor to Pep Guardiola after agreeing a three-year deal with the Italian - with his former club Chelsea set to land around £17million in compensation.

Guardiola waved an emotional farewell to the Etihad at the end of the season after a trophy-laden decade in charge.

The Italian has been out of work since his mutually agreed departure from Chelsea on New Year's Day, which came after a bitter fallout with Stamford Bridge's owners.

Maresca had already had two previous spells at City - first in 2020 where he led the Elite Development Squad and then rejoining in 2022 as one of Guardiola's assistants after a spell as Parma boss.

Maresca said after the news was confirmed on Monday: 'Manchester City is a club I know very well and to have the chance to manage this team is a brilliant opportunity for me. City is an incredibly well-run football club. Everything they do is innovative, planned and purposeful. For a manager, that is a dream situation. It provides the consistency I need to do my job effectively.

'This will be my third spell here. I know this club, I know the demands and I know the expectations. The quality of the people who work here is what makes it so special, and I want to thank them for showing faith in my ability.

'I cannot wait to start coaching the players. I want us to win, play good football and enjoy the pressure of representing Manchester City.'

Daily Mail Sport reported last month that Chelsea were demanding compensation from City in the event of Maresca's appointment at the Etihad, with the Blues primed to take legal action over the matter.

Stamford Bridge officials were left incensed with the Italian amid allegations he had spoken with City while still in post with them.

Chelsea insisted they were owed a financial settlement for how Maresca departed them mid-season. He departed on New Year's Day with three and a half years remaining on his contract.

It then emerged that Maresca had previously informed his employers at Chelsea how he had spoken to City representatives over the possibility of succeeding Guardiola in the upcoming summer, which is now the case.

A settlement of around £17m is believed to have been agreed between the clubs.

Manchester City chairman Khaldoon Al Mubarak said: 'Enzo is someone who has always sought out opportunities to challenge himself and succeed in his managerial career. He brings a personality, passion and intelligence completely aligned to our needs. He is rejoining an organisation that is entirely in lock-step with his ambition and hunger for achievement and his return to Manchester City is therefore a welcome natural next step for both him and the club.

'Enzo inherits a squad and football organisation perfectly suited to reflect and evolve his brand of football, and we are all very much looking forward to seeing the impact he can have in building further on the club’s success. Welcome home Enzo.'

Maresca left Chelsea in early January with his position viewed as untenable after he skipped post-match media duties following a draw with Bournemouth. The club had been in second place before a run of poor results that preceded his departure.

Replacement Liam Rosenior was unable to turn things around and the club's disappointing campaign continued under the stewardship of interim head coach Calum McFarlane, who ended his temporary stint in charge with a 2-1 defeat against Sunderland, slipping to a woeful 10th place finish in the final table.

Manchester City, who are still locked in a legal battle with the Premier League over 115 alleged breaches of the league's financial rules, will be hoping to return to the summit of English football under Maresca after missing out on the title two years in a row.

City are not the only high-profile team heading into next season with a new permanent boss at the helm, with Andoni Iraola replacing Arne Slot at Liverpool, Xabi Alonso taking charge at Stamford Bridge and Michael Carrick continuing his duties at Manchester United after an impressive spell as interim head coach.