Claudio Ranieri has succeeded fellow Italian Marco Simone as coach of Ligue 2 side AS Monaco FC.

Ranieri has signed a two-year deal with the option for another 12 months. His last role ended in March when he was dismissed by FC Internazionale Milano. "It is a tremendous honour to have been asked to become the head coach at AS Monaco," he said. "It is one of the great clubs of European football with a glorious past and, I believe, an equally exciting future. I very much look forward to the challenge of building a team here that can take the club back to where it belongs – the top of the European game."

UEFA Champions League runners-up in 2004 – when they eliminated Ranieri's Chelsea FC in the semi-finals – Monaco dropped out of the French top flight for the first time in 28 years in 2011. They were in contention for an immediate return for much of this season but eventually finished eighth. Club president Dmity Ribolovlev said: "A warm welcome to new head coach Claudio Ranieri who I am absolutely confident will take the team to the next level. I cannot wait for next season."