Chelsea's hopes of confirming Carlo Ancelotti as manager are being held up.

The Times says the Blues were planning to make an announcement last night, although they held off at the request of the Italian, who was eager to show respect for AC Milan after bringing an end to eight years in charge at the San Siro by resigning yesterday.

Ancelotti has agreed a three-year contract worth £6.5 million a year and will start work on July 1. He will become the highest-paid manager in the Barclays Premier League, but in global terms his salary is dwarfed by the £10 million a year that José Mourinho is paid by Inter Milan.

Confirmation of the appointment could be delayed by a stand-off with Milan over the composition of his back-room staff. Ancelotti would like to bring Filippo Galli, the former Milan defender and his assistant, to Stamford Bridge as his No 2, but the Italian club want him to stay and work under Leonardo, the former Brazil midfield player who will succeed Ancelotti at the San Siro.

Milan are demanding compensation for Galli, who speaks excellent English and has experience of English football, having spent a season under Gianluca Vialli at Watford towards the end of his playing career.