As interim manager, the Italian led the Blues to Champions League and FA Cup titles last season.
London: Chelsea have handed Roberto Di Matteo a two-year contract as manager of the club after his heroics in the Champions League and FA Cup from a temporary position last season.
Di Matteo was installed as caretaker manager after the sacking of Andre Villas-Boas towards the end of last season, but became the favourite for the permanent job after winning the double during his short time in charge.
Chelsea's cheif executive, Ron Gourlay, spoke of his delight at competing the signing of the man he feels is perfect for the job.
"Roberto's quality was clear for all to see when he galvanised the squad last season and helped the club make history, and the owner and board are very pleased he will be continuing his good work," Gourlay told the club's official website.
"We all believed he was a young coach with much to offer when we first asked him to take charge of team affairs in March and the manner in which he worked with us, the players and all the staff, and the success that followed, made him the clear choice when it came to selecting the person to take us forward in the seasons to come.
"We will be working closely with Roberto in the weeks ahead, some exciting signings have already been made and Roberto has had input into those.
"Although he has set the bar very high in the short time he has been in charge, we know that Roberto is the right man to lead Chelsea onto further success."
Di Matteo was also pleased to have been given the role but is focusing on next season instead of looking back at his achievements with the club in the previous campaign.
"I'm obviously delighted to have been appointed as Manager and First-Team Coach," he said.
"We all achieved incredible success last season that made history for this great club. Our aim is to continue building on that and I'm already planning and looking forward to the squad's return for pre-season."