Italian Di Matteo was shown the door this morning despite leading the Blues to a Champions League and FA Cup double last season.
Ex-Liverpool boss Benitez, who has been out of work since an ill-fated six-month spell at Inter Milan in 2010, becomes the NINTH manager of the Roman Abramovich era.
He will meet the players at the club's Cobham training ground in the morning.
A Blues statement said: "The owner and the board believe that in Benitez we have a manager with significant experience at the highest level of football, who can come in and immediately help deliver our objectives."
The Russian billionaire wielded the axe following Chelsea's 3-0 defeat to Juventus last night, which left the Champions League holders facing elimination at the group stage.
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