Chris Hughton has admitted that Paul Lambert will be "a hard act to follow" after being formally unveiled as Norwich City's new manager.

The 53-year-old replaces Lambert at Carrow Road following the Scot's decision to leave for Aston Villa. Hughton has signed a three-year deal and takes three members of his Birmingham backroom staff with him: his assistant manager Colin Calderwood, the first-team coach Paul Trollope and the chief scout Ewan Chester.

The former Newcastle manager said the offer of a return to Premier League football was too good to turn down. "As soon as the call came, due to the standing Norwich have, and their Premier League status, it was something that excited me," Hughton said. "I'm very excited about the challenge ahead. It has all been done so suddenly and I am delighted to be here."

Hughton took Birmingham to fourth in the Championship but his team were knocked out in the play-off semi-finals by Blackpool.

"It was difficult to leave Birmingham," he added. "I had a very good year there and the supporters have been excellent with me. It's a wonderful club and I had a good relationship with the staff and the players so I'm grateful to them for allowing me to have this opportunity."

Lambert's reputation rose rapidly in English football after he achieved successive promotions with Norwich and then took the club to 12th position in the Premier League last season.

"The job Paul has done here in the last three years is a wonderful achievement," Hughton said. "To rise from the first division to the Premier League for someone in management is a tough task and everyone appreciates the job he did. It will be a hard act to follow but it's about making progress, making sure we have stability in this division now."

The Cardiff manager, Malky Mackay, was the early favourite to succeed Lambert and Celtic's Neil Lennon was also linked with the position, but Norwich's chief executive, David McNally, said Hughton was always the club's No1 choice.

"We looked at the UK and international market, and had a detailed look at who was available and who wasn't and we wanted to try to find the person who could take us forward.

"This is one of the best times in the club's history financially so we think the job is attractive to managers around the world. We thought it was key to have top-league experience, preferably in the Premier League and at the end of it all we looked at the names and Chris stood out as the No1 candidate. We recognised that unanimously."

One of the immediate concerns for Hughton will be the future of the club captain, Grant Holt, who had a transfer request turned down last month.

"He is a quality player, no doubt about that. And with his record – to score the goals he did last season – there wouldn't be any manager coming in who wouldn't want to keep a player of that quality.

"I've only just come through the door a few minutes ago so I have not had the opportunity to speak with him but that will be one of the priorities. He is contracted to this club. He won player of the season for the last three seasons so I absolutely would like him here."

McNally echoed the new manager's words, adding: "We want him to stay. He is our captain and has been our top scorer for the last three years. He is not for sale and we would not encourage anyone to bid for him."