Bayern Munich have confirmed that Carlo Ancelotti will become their new coach at the end of the 2015-16 season after Pep Guardiola decided not to renew his contract with the Bundesliga champions.

Guardiola, 44, is approaching the end of his three-year contract and had promised there will be "clarity" on his plans next week, after club CEO Karl-Heinz Rummenigge said there would be a final discussion after the game against Hannover on Saturday.

Rummenigge told BILD: "We are thankful to Guardiola for all he gave our club and hope to celebrate more success in the current season. With Ancelotti we have another very successful coach coming to Bayern. We are looking forward to working together."

Breaking: #Guardiola to leave at the end of the season. His replacement will be Carlo #Ancelotti (56/Contract untl 2019). More to follow. - FC Bayern English (@FCBayernEN) December 20, 2015

He added on the club website: "We are grateful to Pep Guardiola for everything he has given our club since 2013. I am convinced that Pep and our team will now work even more intensively towards achieving our major sporting goals -- especially as it is now confirmed that Pep is to leave FC Bayern."

Former Real Madrid boss Ancelotti -- the only manager to have ever won three Champions League trophies -- had been tabbed to replace Guardiola at Bayern if the Catalan coach decided against prolonging his stay in the Bundesliga, and has agreed to a three-year contract beginning on July 1, 2016.