The Spanish coach has enjoyed remarkable success in Bavaria in his spell as manager, winning two Bundesliga titles, one DFB-Pokal, the Uefa Super Cup and the Fifa Club World Cup, but will leave after choosing not to renew his contract.
And Karl-Heinz Rummenigge has confirmed that Ancelotti, who has been out of work since being sacked by Real Madrid in May, will take over at Allianz Arena.
"We are very thankful for everything Pep Guardiola gave to this club since 2013. I am convinced that Pep and his team will now work even more intensively to achieve our big sporting goals because now it has become clear that Pep will leave FC Bayern," he said in a statement.
"Carlo Ancelotti was successful everywhere he coached. He won the Champions League three times. Carlo is a quiet, balanced expert who can cope with the stars and someone who favours a variety of systems in football. We were looking for that, we have found it. We are looking forward to work together."
READ MORE | Pellegrini: I hope Guardiola comes to City one day
Goal understands that Manchester City have made Guardiola their top target to replace Manuel Pellegrini, with Manchester United also on alert amid increasing concerns over Louis van Gaal's management.
The German giants defeated Hannover 96 1-0 on Saturday and key attacker Thomas Muller claimed afterwards the players are paying little attention to their managerial situation.
"We don't care about that," he told Sky. "We want to win everything this season, no matter how long it takes with the coach's contract.
"I do not know whether he will renew in the end, but if he doesn't then it does not matter. Jupp Heynckes also did this in 2012-13 and we won the treble that year."