London, May 17 -- Former Real Madrid legend Xabi Alonso has reached an agreement with Chelsea to become their permanent manager on a four-year deal, reported Sky Sports.

The former Real Madrid boss is Chelsea's number one target and would be starting work at Stamford Bridge from July onwards for pre-season. Last night, Chelsea registered a 1-0 loss to Manchester City in the FA Cup final.

Chelsea have not had the best season so far; they are currently in ninth place in the Premier League, with 13 wins, 10 draws and 10 losses, giving them 49 points and keeping them 30 points away from table-toppers Arsenal.

The Blues had sacked Liam Rosenior in April after three months in charge following a string of poor performances and had been lookin...