Paris – Spanish giants Real Madrid are to pay €4.5 million to be allowed to hire coach Carlos Ancelotti.

The 54-year-old Italian still had a contract until June 2014 with French club Paris St Germain, but will take over Real Madrid, following Jose Mourinho's departure to Chelsea.

L'Equipe said Saturday that PSG and Real had agreed to the amount payable to the French club.

Ancelotti's contract with Real is said to be worth between seven and eight million euros net per year. But due to tax reasons, he will only sign the contract on July 1.

Former French coach Laurent Blanc is to take over PSG and sign a two-year contract with the Qatar-owned club. Blanc has been without a team since France were knocked out of last years' Euro at the quarter-finals stage.

Blanc, who was in the French squad that won the World Cup in 1998 and the 2000 European championships, has only coached one club, but won the league with Girondins Bordeaux in 2009. – Sapa-dpa