Former Chelsea coach Ten Cate shuns Blackburn to manage Panathinaikos

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The 53-year-old Dutchman has signed a two-year contract with the Athens club.

The former Ajax coach moves to Greece after being sacked as an assistant coach with Chelsea, who he helped to the Champions League final.

Ten Cate (right) as assistant manager at Chelsea, alongside Steve Clarke and Avram Grant

Ten Cate will be formerly introduced by Pana later this month but issued a short statement.

"I'm delighted to have reached an agreement with Panathinaikos FC," he said.

"In my career I have been used to working at the highest level of competition and that's one of the reasons why I consider this new step to be a great challenge.

"Panathinaikos' organisation, history, ambition and attitude towards football in general match those of the greatest football clubs in Europe, so I'm confident that we will achieve our goals. I'm looking forward to coming to Athens and meeting my players."

Ten Cate inherits a team that finished third in the Super League last season.

The campaign was a huge disappointment as the club had sought to mark their centenary with a league title, and coach Jose Peseiro was sacked at the end of the season.

News of Ten Cate's appointment has already reached Euro 2008, where Portugal and Chelsea defender Paulo Ferreira backed him to succeed in his new role.

"It's always difficult when you work with someone and he has to go (leave Chelsea)," Ferreira said. "He's a good coach and I think he can do a good job there."