Carlo Ancelotti and Real Madrid have reportedly agreed on the terms of his exit.
The Italian’s future has been a consistent theme in Madrid’s season, with Xabi Alonso having long been touted as his successor.
He was linked with the vacant Brazil job but has since reportedly turned down the offer to lead them into the 2026 World Cup.
Madrid will still have to pay Ancelotti for next year as his contract only expires in 2026 and that has factored into the delay over negotiations.
However, The Athletic now reports that the two parties have reached an agreement.
His exit is set to be confirmed before the end of the season and could even be announced just after Sunday’s El Clasico, which Madrid must win to have a realistic hope of retaining the LaLiga title.
Real Madrid and Carlo Ancelotti have reportedly agreed over the terms of his departure
Ancelotti has won 15 trophies over two stints with Madrid and could yet lift another LaLiga title
Bayer Leverkusen’s Xabi Alonso has been seen as the ideal successor to the Italian for a while
Alonso is widely seen as his natural successor after three brilliant seasons with Bayer Leverkusen.
The former Los Blancos star led Leverkusen to the Bundesliga and DFB-Pokal titles last season and the only game they lost was the Europa League final to Atalanta.
Ancelotti’s next move is unclear after he reportedly turned down Brazil.
Marca reported that he contacted the president of the Brazilian federation, Ednaldo Rodrigues, to inform him of his decision.
Marca’s report claims Ancelotti’s U-turn came after uncertainty emerged over when he could potentially start his role with Brazil.
Brazil believed he would be allowed to leave Real in June, but Ancelotti is understood to have told the federation that he would not take up his position until August.
Barring another major change of heart, Ancelotti will now not become Brazil’s next manager, and could still lead Real in this summer’s Club World Cup.
Ancelotti is still set to leave the Spanish giants ahead of next season, and is believed to be considering a huge offer to manage in Saudi Arabia.
The Saudi contract would reportedly see Ancelotti earn €50m net (£42m), which could be difficult for him to turn down.
Ancelotti, 65, has faced pressure this season despite being one of the most decorated managers ever, and bringing immense success to the Satniago Bernabeu.
In two stints managing the Spanish giants, he has won 15 trophies, including three Champions League and two LaLiga titles.
However, trailing Barcelona in the league, losing in the Copa del Rey and Supercopa de Espana finals, and crashing out of the Champions League quarter-finals to Arsenal appears to have brought down the axe.
