He agreed to a four-and-a-half-year deal with the Liverpool-based club just two weeks after being let go by the Italian-league side Napoli.
"Everton is delighted to confirm Carlo Ancelotti as the Club's new manager," the English team said late on Saturday on its website.
It noted that the Italian manager has won 20 trophies, including league titles in four different countries and three Champions League crowns: two with AC Milan (2003 and 2007) and one with Real Madrid (2014), reports Efe news.
Ancelotti is one of just three managers along with Bob Paisley and Zinedine Zidane to have captured the three Champions League titles.
The 60-year-old Ancelotti instead will make his debut with Everton in a home Boxing Day contest versus Burnley.
"This is a great club with a rich history and a very passionate fan base. There is a clear vision from the owner and the Board to deliver success and trophies. That is something that appeals to me as a manager and I am thrilled at the prospect of being able to work with everybody at the Club to help make that vision a reality," Ancelotti was quoted as saying on Everton's website.
The 60-year Italian manager, whose deal with Everton will run until the end of the 2023-2024 season, is making his return to the Premier League eight years after the end of his two-season tenure at Chelsea.
( With inputs from IANS )