The 62-year-old Dutchman will meet his new players later this week ahead of Saturday's FA Cup match at Watford. He replaces Luiz Felipe Scolari, who was fired on Monday after six months as manager.

Hiddink will remain as coach of the Russian national side.

"The club would like to take this opportunity to thank the Russian Football Union for their understanding and cooperation," Chelsea said in a statement.

Hiddink is currently in Turkey with the Russian side.

"We are in a great position and there will be no damage for the Russian national team," Hiddink said. "I will be focused now and in the future on the Russian national team."

It is likely Hiddink will only be a spectator Saturday, and then be in charge for the following weekend's Premier League match at Aston Villa. Assistant Ray Wilkins is coaching the team on an interim basis.

Before the official announcement, Hiddink said he was ready to take the Chelsea job out of solidarity with owner Roman Abramovich, who is the financial backer of the Russian national team.

"It's a favor for a friend. Abramovich does so much for Russian football that I wanted to give something back. He called me personally," Hiddink said. "I can do it because we (Russia) are only playing two matches in April and one in June, but the English league is finished then."

Hiddink hasn't ruled out staying at Chelsea permanently.

"There are two scenarios," he said. "Either they say: 'Go back to the East' or it all goes well, and then ... but that is not ideal."

AC Milan coach Carlo Ancelotti is considered the favorite to take over on a permanent basis next summer.

"If the position will be open in July then I think he might consider it," Milan director Umberto Gandini said. "He did already have a chance to consider it when he was approached last summer."

Scolari was fired following a string of poor results left Chelsea fourth in the standings - nine points behind leader Manchester United.

Russia has two World Cup qualifying games over the course of the rest of the English league season - at home to Azerbaijan on March 28 and away to Liechtenstein four days later.

Those dates should not conflict with Chelsea league games, and the qualifiers are games Russia should win comfortably as it chases Germany for the top spot in Group 4. Only the group winner is guaranteed to qualify for the 2010 World Cup in South Africa, with the runner-up then chasing a playoff spot.

"The national team is undoubtedly a priority for the coach. There is no talking about it," Russian Football Union President Vitaly Mutko said. "We are strictly following the contract terms. He will continue to be the chief coach of the national (team)."

As for c****ining the two jobs, Mutko said, "It doesn't influence the situation in Russia in any way. It's a common practice for the coach to come here when the team is being trained for the games, on the days of the games to support it. Such practice will continue."

Hiddink won domestic and European club titles with PSV Eindhoven and, at international level, led the Netherlands to the 1998 World Cup semifinals, South Korea to the same stage four years later and took underdog Australia to the second round in 2006. At Euro 2008, he guided outsider Russia to the semifinals.