Ranieri takes over as Monaco coach
The 60-year-old former Chelsea, Juventus, Roma and Internazionale coach has signed a two-year deal and takes over from compatriot Marco Simone.
He will be formally unveiled at a press conference on Thursday, the Monegasque team confirmed on their website.
"We are convinced," they said, "that under the direction of Ranieri the team will continue on their good run of form in the second half of last season, during which they improved considerably. We think above all that the training techniques of Ranieri will bring another level to the preparation of the team, and will allow for a new level of performance to satisfy the supporters."
Ranieri had been out of work since being fired by Inter in March.
He had been linked with a return to England with West Bromwich Albion, who are looking to replace Roy Hodgson.
Monaco, the runners-up in the 2004 Champions League final, slipped into France's second tier a year ago, and could only finish eighth in their first season in Ligue 2.