Chelsea said in a statement that they look forward to working with Villas-Boas, whose 'drive and determination matches that of Chelsea.'
Villas-Boas won the quadruple last year in his first season as manager, and is set to be paid £5million per year at Chelsea.
The British Olympic Association claims an agreement has been reached that will see a British football team compete at London 2012.
BOA chief Andy Hunt has defended the statement in light of criticism from the Scottish, Welsh and Northern Irish Football Associations.
Gareth Bale, Jack Wilshere and David Beckham are all keen to be involved.
A squad would comprise of 15 under-23 players and 3 more of any age. A British football team has not competed at the Olympics since 1960.
Alex McLeish has asked for Aston Villa fans to give him a chance as manager, having joined from Midlands rivals Birmingham City last week.
Fans have voiced their protests, but McLeish insisted he is the right man for the job, and is ready for 'the biggest challenge' of his career.
Manchester United have completed the signing of Aston Villa winger and England international Ashley Young for an estimated £15million.
He joins Sir Alex Ferguson's side on a five-year deal, having passed his medical and agreed personal terms with United on Wednesday.
Young's former Aston Villa teammate Stewart Downing has also been linked with a move away from Villa Park, with Liverpool said to be interested.
Tottenham Hotspur are said to be preparing to offer Luka Modric a new contract worth £75,000-a-week to keep him at White Hart Lane.
The Croatian indicated he was keen to move to Chelsea in light of a £22million bid from west London, but Tottenham insist Modric is not for sale.
Steven Gerrard believes that Liverpool will compete for the title next season. Manchester United recently won a record 19th league trophy, and Gerrard responded:
"Now the challenge for us is to equalise. We've got to make sure we go into the season competing with Manchester United."
And finally, Chris Hughton has been confirmed as the new Birmingham boss, returning to Championship management having led Newcastle United to promotion back in 2009/10.