New Real Madrid coach Xabi Alonso said Monday he has the energy and excitement to deliver success worthy of the Spanish giants' rich history as he was presented as Carlo Ancelotti's replacement.

Alonso will lead the team at the Club World Cup this summer and has signed a three-year deal until June 2028, after Ancelotti departed to take charge of the Brazil national team.

Madrid failed to win a major trophy this season, losing their La Liga crown to rivals Barcelona, who also beat them in the Copa del Rey and Spanish Super Cup finals.

Real were dealt a heavy Champions League quarter-final defeat by Arsenal as their European trophy defence also fell short.

"We have fantastic players, we have a team that has a lot of potential, (capable of) a very good present and a very good future," Alonso said at Real Madrid's training ground.

"That gives me a lot of reason to come here with a lot of energy and a lot of hope that I can get the best out of all the players and build a great team...

"(I have) the conviction that we can achieve big things, worthy of Real Madrid, worthy of all these European Cups, of all these accomplishments made over so many years."

Alonso, a technically gifted central midfielder in his playing days, made 236 Madrid appearances between 2009-2014, winning six trophies including the Champions League in his final season at the club.

That was Madrid's 10th European Cup - La Decima - and they have gone on to win five more in the past decade for a record 15 Champions League triumphs.

The 43-year-old coach led Bayer Leverkusen to a superb unbeaten Bundesliga and German Cup double in the 2023-24 campaign, making him a target for Europe's top clubs.

Alonso, who was coached by Ancelotti, Pep Guardiola and Jose Mourinho among other managerial greats, said it was a "special day".

"I have been away from here for a few years, but I think the link with Madrid and the fans has never ended, it's always been there," he said.

Madrid chief Florentino Perez gave an introductory speech welcoming Alonso back to the Spanish capital.

"This is a very special day for those who love Real Madrid, it will be the start of a new era filled with excitement and intense emotions," said Madrid president Perez.

"A coach arrives who is one of the best in the world, and who knows what this badge and this shirt means...

"Today we welcome one of our own -- Xabi Alonso. Welcome back to your home, Real Madrid."

Former Liverpool and Bayern Munich midfielder Alonso also won the 2010 World Cup and two European Championships with Spain before starting his coaching career.

Real Madrid's Club World Cup campaign starts against Saudi Arabian side Al-Hilal in Miami on June 18, which will be the first look at Alonso's project.

One of the Spaniard's main jobs will be to help the team improve defensively while continuing to profit from the goals of star players Kylian Mbappe and Vinicius Junior.

"It's lucky to have players of this level, not just Kylian or Vinicius, but so many," said Alonso.

"They make the difference and we have to get everything we can out of them -- I have ideas."

Ancelotti regularly complained Madrid could not find a balance between attacking and defending, losing 14 matches across all competitions.

"I've seen the games and I have analysed them, now I am thinking about how to make a balanced team," said Alonso.

"I want everyone to know how we want to do things, and that will give us a stability that will allow individual qualities to flourish."

Alonso, who regularly used a 3-4-3 formation in Germany, said he knew how he wanted his team to play, even if the structure changes.

"We want an ambitious and active game, knowing how to take the initiative, and we have the players for it," he explained.

"I want a team that transmits emotion, energy, ambitious play and connects with the fans."