Jose Mourinho has been unveiled as the new manager of Real Madrid after signing a four-year deal at the club.
The 47-year-old replaced Chilean Manuel Pellegrini to become Real's 11th coach in the past seven years.
"I like to give myself a challenge and this is a big one," said Mourinho.
"I have a lot of confidence in myself and my ability as a coach."
Sporting director Jorge Valdano said: "It's an honour to have one of the most prestigious coaches in the world."
Valdano added: "We are delighted to have him here with us. The best thing for our club right now is to have Mourinho with us."
Mourinho, once on the coaching staff at Barcelona, has moved to Spain after Real and his former club Inter Milan agreed a compensation package.
The 47-year-old replaced Chilean Manuel Pellegrini to become Real's 11th coach in the past seven years.
"I like to give myself a challenge and this is a big one," said Mourinho.
"I have a lot of confidence in myself and my ability as a coach."Sporting director Jorge Valdano said: "It's an honour to have one of the most prestigious coaches in the world."
Valdano added: "We are delighted to have him here with us. The best thing for our club right now is to have Mourinho with us."
Mourinho, once on the coaching staff at Barcelona, has moved to Spain after Real and his former club Inter Milan agreed a compensation package.
The Portuguese boss won the Champions League in his final game at Inter after his side defeated Bayern Munich to complete a historic Treble, having already retained the Serie A title and defeated Roma to lift the Italian Cup.
But Mourinho explained that he felt the lure of coaching Real was too strong to resist.
"I don't know if I was born to coach Real Madrid but I was born to be a football coach," he added.
"I am Jose Mourinho and I don't change. I arrive with all my qualities and my defects.
"My attraction to Real Madrid is due to its history, its frustrations in recent years and its expectations to win.
"It's a unique club and I believe that not to coach Real leaves a void in a coach's career.
"Luckily, I've had a beautiful career and it makes me proud to have come here."
But Mourinho explained that he felt the lure of coaching Real was too strong to resist.
"I don't know if I was born to coach Real Madrid but I was born to be a football coach," he added.
"I am Jose Mourinho and I don't change. I arrive with all my qualities and my defects.
"My attraction to Real Madrid is due to its history, its frustrations in recent years and its expectations to win.
"It's a unique club and I believe that not to coach Real leaves a void in a coach's career.
"Luckily, I've had a beautiful career and it makes me proud to have come here."
Real have not won a trophy in the two seasons since Florentino Perez returned as president - and new coach Mourinho stressed the importance of the attitude of his players in crafting a winning team.
"I am very enthusiastic and I want my players to think that way," said the Portuguese.
"The beauty is not so much to train or play at Real, but to win at Real Madrid.
"I have a lot of confidence in my players, I have the hope that my new players have confidence in me."
Mourinho's Portuguese compatriot Cristiano Ronaldo joined Real from Manchester United for £80m last summer.
And the new boss hinted that the 25-year-old will have to fit into his disciplined style of play if he is to flourish next season.
"I understand that Ronaldo is an important player for Real and for the world of football," said the new boss.
"But my players must understand that the most important thing is the club.
"Cristiano likes to win, so if he likes to win it is not difficult to persuade him the most important thing is not the coach or the players but the club.
"If we all work as a group we will get results."
Mourinho started his managerial career with Benfica in his native Portugal in 2000 and has since picked up major honours at Porto, Chelsea and Inter.
He won the Portuguese league twice with Porto, in addition to the Uefa Cup and Champions League.
The self-appointed Special One moved to Chelsea in 2004 and ended the club's 50-year wait for a top-flight title in his first season in charge at Stamford Bridge.
Chelsea retained the title in the 2005/06 season and also won the Carling Cup twice and the FA Cup before Mourinho left in September 2007 after a widely reported series of disagreements with owner Roman Abramovich.
Mourinho took over at Inter in June 2008 but endured a difficult relationship with the Italian press.
"I am very enthusiastic and I want my players to think that way," said the Portuguese.
"The beauty is not so much to train or play at Real, but to win at Real Madrid.
"I have a lot of confidence in my players, I have the hope that my new players have confidence in me."
Mourinho's Portuguese compatriot Cristiano Ronaldo joined Real from Manchester United for £80m last summer.
And the new boss hinted that the 25-year-old will have to fit into his disciplined style of play if he is to flourish next season.
"I understand that Ronaldo is an important player for Real and for the world of football," said the new boss.
"But my players must understand that the most important thing is the club.
"Cristiano likes to win, so if he likes to win it is not difficult to persuade him the most important thing is not the coach or the players but the club.
"If we all work as a group we will get results."
Mourinho started his managerial career with Benfica in his native Portugal in 2000 and has since picked up major honours at Porto, Chelsea and Inter.
He won the Portuguese league twice with Porto, in addition to the Uefa Cup and Champions League.
The self-appointed Special One moved to Chelsea in 2004 and ended the club's 50-year wait for a top-flight title in his first season in charge at Stamford Bridge.
Chelsea retained the title in the 2005/06 season and also won the Carling Cup twice and the FA Cup before Mourinho left in September 2007 after a widely reported series of disagreements with owner Roman Abramovich.
Mourinho took over at Inter in June 2008 but endured a difficult relationship with the Italian press.
The day after Inter won the Champions League at Madrid's Bernabeu stadium, Mourinho, who was contracted until 2012, conceded it had almost certainly been his last game in charge.
And following the news that Mourinho was moving to Spain, an Inter statement read: "President Massimo Moratti and FC Internazionale thank Jose Mourinho and his coaching staff for the work done during two successful seasons on the domestic and European fronts."
Pellegrini's free-scoring Real side finished runners-up in the Spanish League this season, netting 102 goals in 38 games, with 60 of those strikes coming at home.
But the 56-year-old Chilean was dismissed for failing to land any silverware, despite the Spanish giants having signed Ronaldo, Kaka, Karim Benzema and Xabi Alonso for a combined fee in excess of £196m in the summer of 2009.
"The sacking of Pellegrini doesn't make me happy. I am never happy when a coach is sacked, but football is like that," said Mourinho.
"I am a coach that has a lot of self-esteem and confidence and I don't think about the possibility of being sacked.
"I think four years of contract is enough to win, to build a strong team for the present and the future."
Mourinho will reportedly have full control of transfer policy at Madrid, with Perez taking a backseat after two successive seasons without a trophy since the start of his second spell as president.
Liverpool midfielder Steven Gerrard and Chelsea duo Frank Lampard and Ashley Cole have been linked with Real over the last few days.
And following the news that Mourinho was moving to Spain, an Inter statement read: "President Massimo Moratti and FC Internazionale thank Jose Mourinho and his coaching staff for the work done during two successful seasons on the domestic and European fronts."
Pellegrini's free-scoring Real side finished runners-up in the Spanish League this season, netting 102 goals in 38 games, with 60 of those strikes coming at home.
But the 56-year-old Chilean was dismissed for failing to land any silverware, despite the Spanish giants having signed Ronaldo, Kaka, Karim Benzema and Xabi Alonso for a combined fee in excess of £196m in the summer of 2009.
"The sacking of Pellegrini doesn't make me happy. I am never happy when a coach is sacked, but football is like that," said Mourinho.
"I am a coach that has a lot of self-esteem and confidence and I don't think about the possibility of being sacked.
"I think four years of contract is enough to win, to build a strong team for the present and the future."
Mourinho will reportedly have full control of transfer policy at Madrid, with Perez taking a backseat after two successive seasons without a trophy since the start of his second spell as president.
Liverpool midfielder Steven Gerrard and Chelsea duo Frank Lampard and Ashley Cole have been linked with Real over the last few days.
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