According to reports, Ancelotti has been uncertain about his future after Real Madrid’s defeat against Arsenal in the Champions League quarter-finals. Real lost the second leg at home 2-1, exiting the competition 5-1 on aggregate.

Sky Sports reports that the 65-year-old coach will remain in charge until the Copa del Rey final against Barcelona but will leave Real afterward.

Real Madrid and Barcelona are competing for domestic trophies. Under Ancelotti, Real currently trails Barcelona by four points in La Liga with seven games remaining.

The two teams will face each other in El Clásico on May 11, but Ancelotti is not expected to be on Real’s bench. The Brazilian national team wants to appoint Ancelotti, formerly Everton’s manager, as their new head coach. He may accept the role before La Liga concludes.

After the defeat against Arsenal, Ancelotti said:“The club may decide to replace me, whether this year or next when my contract ends. But when my time here is over, I will be grateful to this club. It could be tomorrow, in 10 days, a month, or a year—it doesn’t matter if my contract ends or not. We’ve managed great moments and won trophies, but we must also accept the bad ones. In these two games, Arsenal was better.”

Ancelotti returned to Real Madrid in the summer of 2021 and has won 11 trophies in his second stint, including two La Liga titles, two Champions League titles, and the Club World Cup.

Brazil Hopes to Secure Ancelotti

The Brazilian national team remains hopeful of appointing Ancelotti as their new coach. A source told Sky Sports that Diego Fernandes, a well-known Brazilian businessman, is mediating the move.

Fernandes reportedly has connections with Ancelotti’s camp and the Brazilian Football Confederation (CBF). Although not officially linked with CBF, his close ties to Ancelotti, who previously managed Bayern Munich, are part of Brazil’s strategic plan to hire the Italian coach.

However, concerns exist in Brazil that time is running out, and the national team cannot remain without a coach until August. Brazil’s next matches are in June against Paraguay and Ecuador in the 2026 World Cup qualifiers. Brazil has been without a coach since March after firing Dorival Junior following a 4-1 loss to Argentina.

Ancelotti’s current contract with Real Madrid runs until June 2026, while Real has been linked with Xabi Alonso, Bayer Leverkusen’s current coach and a former Real player. Reports suggest Ancelotti has been Brazil’s primary target since last year’s Copa América. There are also reports that CBF is interested in Jorge Jesus, currently managing Al-Hilal in the Saudi Pro League.