The Celtic transfer war chest Brendan Rodgers will have to keep Rangers at arm's length and make Euro impact

Brendan Rodgers is set to have a transfer war chest available to him after being confirmed as Celtic boss.

More than four years after leaving for Leicester City, the Northern Irishman’s return to the Scottish champions was announced on Monday. His second spell sees him take over from Ange Postecoglou following the Australian's move to Tottenham Hotspur.

Rodgers was described as the “outstanding candidate” by chairman Peter Lawwell after many potential options were considered by the Celtic hierarchy. He was available having left the Foxes in April and was convinced to return to Celtic Park despite speculation that he was planning on taking some time away from coaching. According to the Scottish Sun, his three-year-deal is worth nearly £3million-a-year.

On top of that, he will have a significant transfer kitty at his disposal. The same report suggests he will have £30million available to him to put his stamp on a squad which won the domestic treble last season. While keeping Rangers at arm's length is the priority, both Rodgers and the club are keen to make a stronger impact on the European stage.

Celtic return to the Champions League group stage next season. They failed to win any of their six games last season and have won just two of their last 24 group matches in Europe’s premier competition. The furthest they have reached in Europe since the UEFA Cup quarter-finals in 2004 has been the last-16 of the Champions League which they have managed on three occasions.

Celtic’s current first-team squad stands at more than 30, while there is interest in some of the club's key assets. Rodgers will be aiming to reduce the size of his squad, keep his best players while adding signings he feels will be able to make an instant impact and improve upon the talent he already has.

“Ange has done some brilliant work across the last two years and I will be doing all I can to maintain Celtic’s momentum as we face all our domestic and European challenges," Rodgers said following the announcement of his return to Celtic. “We have a hugely impressive and talented group of players and staff at the club, and I am really looking forward to meeting up with them all and then getting straight down to work.