Paul Clement has been appointed as manager of Reading, the Sky Bet Championship club have announced.
The former Derby boss had been out of work since he was sacked by Swansea in December.
Reading parted company with Jaap Stam on Wednesday and have moved quickly to appoint a new manager with only three points separating the club from the Championship relegation zone.
Reading chief executive Ron Gourlay says he is pleased to bring in a coach who has worked at top European clubs such as Real Madrid and Bayern Munich.
"I am delighted to have secured the services of a hugely experienced forward-thinking manager like Paul, who I have personally worked alongside during our time spent at Chelsea," said Gourlay.
"Not only has he coached at some of the greatest clubs in Europe, winning trophies, league titles and European honours and working with some of the greatest players in the world, fundamentally he also has a rich understanding of English football having managed in both the Championship and the Premier League in recent years.
"Now, everyone at Reading Football Club is fully behind Paul and his squad of players as, together, we initially set our sights on an eight-game battle and continue to strive to take this club forward."
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Championship side Reading have completed the signing of midfielder John Swift from Chelsea.
Swift, 21, has signed a three-year deal with The Royals, having spent last year out on loan at Brentford.
John is a very talented player. I’ve seen him play and I think he could be very important in the way we want to play.
He can play as a winger on either side, or as an attacking midfielder. His physique is good, he is good on the ball, he has the pace to get past players, and he has the capability of putting his teammates in front of goal with chances to score. He is going to be a big asset for the club.