Club chief executive Karl-Heinz Rummenigge confirmed reports which emerged last week, revealing the Spaniard’s plans to leave the Bundesliga champions at the end of what is likely to be another title-winning season.
The news comes amid strong links with a long-awaited move to the Premier League, with Manchester City, Manchester City and Chelsea - looking for a new full-time boss following Jose Mourinho's sacking - all linked with the 44-year-old.
City are the favourites to land to in-demand boss, with former Real Madrid president Roman Calderon telling talkSPORT last week he is keen to reunite with the former Barcelona backroom staff at the Etihad Stadium.
Guardiola has enjoyed a glittering career in Bavaria, winning two Bundesliga titles and one German Cup since his appointment in 2013.
The Spaniard has transformed the Germans into one of the most lethal attacking forced in world football, but having missed out on Champions League glory in his three years at the club, the arrival of three-time winner Ancelotti will be a big boost for the club’s goals in Europe.
Ancelotti arrives after taking a one-year sabbatical, following his departure from Real Madrid in the summer, and will sign a three-year contract with Bayern.
"We're grateful to Guardiola for everything he has given to our club since 2013," Rummenigge said in a statement published on the Bundesliga club's website.
"I am convinced that Pep and our team are now going to work even more intensively on realising our sporting ambitions, particularly now that it has been confirmed that Pep will be leaving Bayern.
"Carlo Ancelotti has had success as a coach everywhere and he has won the Champions League three times.
"Carlo is a calm, level-headed expert who knows how to work with stars and plays a brand of football rich in variety.
"That is what we were looking for, and that is what we have found. We are looking forward to working with him."
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