Real Madrid former manager Carlo Ancelotti will be the new manager of German side Bayern Munich from next season.

It was announced on Sunday that current manager Pep Guardiola will step down from his post as head coach of the Bavarian giants. 

"We are thankful to Guardiola for all he gave our club and hope to celebrate more success in the current season," Bayern chief executive Karl-Heinz Rummenigge told German newspaper Bild. "With Ancelotti we have another very successful coach coming to Bayern. We are looking forward to working together."

The news is set to put Premier League giants Chelsea, Manchester City, Manchester United, and even Arsenal on high alert. Guardiola has a rich CV, which includes three La Liga and two UEFA Champions League titles with Barcelona, as well as two Bundesliga titles with Bayern Munich.

Man City coach Manuel Pellegrini has meanwhile stated that he is sure Guardiola will be making a move to the Premier League, and the Chilean hopes that the ex-Barca tactician choses to become the coach of Manchester City.

"It is impossible not to want to work here [in the Premier League] — especially if you have experience of working in other leagues," Pellegrini said. "So, Pep Guardiola will work here. I don't know if it will be next season here at [Man] City, or even at another club, but I am sure that one day he will come to the Premier League.

"And I hope he will have the option to work at Manchester City. I say that because I love this club and I hope, in the future, he can work here also. I am sure that he will be very important for the club."