Clement has been out of work since leaving Swansea in December and takes over a side sitting three points above the drop zone with eight games remaining.

#WelcomeClement pic.twitter.com/naDaF0wdzh

— Reading FC (@ReadingFC) March 23, 2018

Royals chief executive Ron Gourlay said: "I am delighted to have secured the services of a hugely experienced forward-thinking manager like Paul, who I have personally worked alongside during our time spent at Chelsea.

"Not only has he coached at some of the greatest clubs in Europe, winning trophies, league titles and European honours and working with some of the greatest players in the world, fundamentally he also has a rich understanding of English football having managed in both the Championship and the Premier League in recent years.

"Now, everyone at Reading is fully behind Paul and his squad of players as, together, we initially set our sights on an eight-game battle and continue to strive to then take this club forward."

Clement has an impressive coaching CV having worked at Chelsea, Paris St Germain, Bayern Munich and Real Madrid, while also managing the Swans and at Derby.

He kept the Welsh club in the Premier League last season after a strong run of form but lost his job in December following a tough start to the new term.

Stam left the Berkshire club on Tuesday after overseeing a difficult campaign in the Championship, having been a penalty shootout away from winning promotion to the Premier League last season.

The Royals were unable to bounce back from their play-off final defeat to Huddersfield and have looked more likely to exit the division at the wrong end.

They are three points above 22nd-placed Birmingham having won just one league game since December 2.

Clement's first game at the helm will be at home to QPR next Friday.