Carlo Ancelotti has taken over as Real Madrid manager, with Laurent Blanc replacing the Italian as coach of Paris St-Germain.
Blanc, 47, has agreed a two-year contract at the Parc des Princes.
PSG appeared to be trying to secure a replacement for Ancelotti before letting him go and said they were "delighted" at Blanc's appointment, despite French media claiming he was not the first choice.
He will take charge of the squad on 1 July for the start of pre-season training.
Blanc played for Montpellier, Auxerre, Barcelona, Inter Milan and Manchester United among others during his playing career, and the former central defender was also part of the French side which won the 1998 World Cup and Euro 2000.
As a manager, he led Bordeaux to the 2009 French league title before having a stint in charge of his country's national team between 2010 and 2012.
He will now assume control of a PSG outfit which has become one of European football's major players since being taken over by Qatar Sports Investments in August 2011.