Paciencia replaces Jose Luis Oltra, who was fired at the end of 2012 with the club bottom of the league.
Paciencia led Braga to the Europa League final in 2011, but was fired by Sporting Lisbon last season.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.