The former Italy star signed a new four-year deal with the Italian Champions that will earn him 5 million euros beating Ancelotti who has a contract worth 4.5 million euros per year until 2010.

Ancelotti led Milan to two Champions League titles in the past five years in addition to one Scudetto title.

Mancini is Europe's second highest paid coach as Chelsea's Jose Mourinho is on top of the list with a 5.5-million euro contract per year.