Reading have confirmed the appointment of Brendan Rodgers as their new manager on a three-year contract.
The Royals have paid "substantial" compensation to bring Rodgers from Championship rivals Watford, ending his seven-month tenure with the Hornets.
"They made the job too hard to turn down," said Rodgers. "I'm very proud to be sat here in charge of what is essentially a Premier League club.
"I want to be the second man to take Reading into the top flight."
He added: "We have seen what this club is capable of in the last four, five years - there is a Premier League set-up here.
"Reading have been managed incredibly well for the last 15 to 20 years and that has put us in the great position we are in today.
"The aim is always to be a sustainable club in the Premier League and that's what we want to do. That's my ambition."
I am absolutely overjoyed to be returning to Reading, a club that has always been close to my heart
Rodgers succeeds Steve Coppell, who quit the Madejski Stadium after six seasons in charge.
"Brendan is the perfect fit for Reading Football Club," said Royals chairman John Madejski.
"He was the outstanding candidate in a very strong field of applicants. He knows the club extremely well, he has worked at the highest level and has every attribute we were looking for in a new manager."
Northern Irishman Rodgers, who also had a spell at Chelsea as youth coach and then reserve-team coach before moving to Watford in November 2008, began his coaching career at Reading and still has his home in the town.
"I am absolutely overjoyed to be returning to Reading, a club that has always been close to my heart," said Rodgers.
"This is a fantastic opportunity and I cannot wait to get started. This is a new cycle for Reading and I am delighted to be the man chosen to lead the club to more success."
Rodgers worked under Jose Mourinho at Chelsea and said he had learned a lot from the Portuguese master manager.
"The most important thing I learned from Jose is respect," added Rodgers. "He's a fantastic coach, but he respects people and having known him, he's an even better man.
"I have worked with children aged five and some of the world's biggest stars, and I treat people the same - as I like to be treated."
Madejski believes Rodgers' track record of developing young players at both Chelsea and Watford will ensure he is successful during his second stint with the Royals.
"Brendan is a bright young man with exciting ideas. His managerial credentials, vision for the future and years of experience with our club put him above all others we considered for the job," said the Royals chief.
"In addition he has a great knowledge of our youth system and will be instrumental in improving the raw talent we already have here."
Watford chairman Jimmy Russo said the compensation package they had agreed started at £500,000 and will potentially rise to £1m.
Rodgers, who only took over at Vicarage Road in November, says he is sad to be leaving the Hornets after keeping them in the Championship.
"Watford is a very good football club and I'll always be very thankful to them because they are a part of my story," said Rodgers.
"There's sadness of course, there is when you leave anywhere, but this is a big job and a fantastic job and I'm looking forward to the challenge."
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