If reports from the mirror are to be believed then the Italian has signed a £11.5million-a-season contract.
The Italian will be in stands for Everton vs Arsenal and his first game will be against Burnley on Boxing Day.
Ancelotti’s contract was terminated by Serie A club Napoli on December 10 after they have reached Champions League final 16.
It is also known from sources that he was given assurances that there will be money to spend in January to strengthen the squad.
The 60-Year-old UEFA Pro Licence holder and 3-time Champions League winner will be assisted by his son Davide Ancelotti and current interim manager Duncan Ferguson.
The appointment of Ancelotti is being considered as a major statement by Everton, who currently sits 16th in the Premier League table, three points above the relegation zone before the Arsenal game.
He is one of the biggest names in the world of football and has won domestic titles in Italy, England, France, Spain, and Germany.
His former clubs include AC Milan, PSG, Real Madrid, Bayern Munich, Napoli, and Chelsea.
He is also one of the three managers who have won the Champions League Three times.
Excited to share the news that I am joining Everton FC. I am delighted to be back in the Premier League and to be part of this historic club. Thank you for your trust in me. #WelcomeMrAncelotti #EFC #COYB pic.twitter.com/13yhM5iHnK— Carlo Ancelotti (@MrAncelotti) December 21, 2019
The Italian is also very experienced in Premier League and English football have won Ancelotti won the Premier League, FA Cup, and Community Shield during his spell at Chelsea between 2009 and 2011.