  Confining configurations are introduced into the standard instanton vacuum
model. This drastically improves theoretical properties of the vacuum:
instanton size density $d(\rho)$ stabilizes at $\rho\sim 0.2 fm$, all chiral
effects are formulated in a gauge-invariant way and quarks are confined. An
interesting interplay of chiral and confining dynamics is observed; for the
realistic values of parameters the Georgi-Manohar picture emerges with chiral
radius $R_{ch}\sim \rho\sim 0.2 fm$ much less than confining radius $R_c\sim$
hadron radius $\sim 1 fm$. In the limit $R_{ch}\ll R_c$ the chiral mass
$M_{ch}(p)$ is unaffected by confinement and can be taken in the local limit
$M_{ch}(p=0)$. Different types of effective chiral Lagrangians (ECL) are
obtained, containing all or a part of gluon, quark and Nambu--Goldstone--meson
fields. The ECL are manifestly gauge--invariant and in the limit of no gluon
fields coincide with those found previously.
  The problem of the double role of the pion -- as a Goldstone meson or as a
$q\bar{q}$ system is briefly disscussed using confining ECL with quarks, mesons
and gluons.
