According to reports, Carlo Ancelotti has verbally agreed with Real Madrid on the terms of his departure, and his exit is expected to be officially announced before the end of La Liga.

As per reports from The Athletic, Ancelotti is set to take over as the head coach of the Brazil national team after the season concludes, leading them until the 2026 World Cup. This agreement came after lengthy negotiations regarding the remaining terms of his contract, which had been extended until 2026 in December 2023.

Agreement for Departure to Brazil

Ancelotti, who took charge of Real Madrid for the second time in 2021, has now agreed to end his tenure with the club. Negotiations with the Brazilian Football Confederation (CBF) began in March 2025, with Ancelotti being the dream appointment of federation president Ednaldo Rodrigues.

Although he was initially set to sign his contract with Brazil on April 28 in London, disagreements with Real Madrid delayed the move. Now, with financial issues resolved, Ancelotti is expected to prepare Brazil for the World Cup qualifiers against Ecuador and Paraguay in June. His official departure announcement may come after El Clásico against Barcelona next Sunday.

Ancelotti’s Performance and Season Challenges
 
Ancelotti, with 15 titles, is the most successful coach in Real Madrid’s history. In his two spells at the club, he won three Champions Leagues, two La Liga titles, two Copa del Rey trophies, two Spanish Super Cups, two UEFA Super Cups, and two Club World Cups. However, the 2024-25 season has been disappointing for Real—elimination in the Champions League quarter-finals against Arsenal with a 5-1 aggregate defeat, a Copa del Rey final loss to Barcelona in extra time, and trailing league leaders Barcelona by four points with four games remaining. These results increased pressure on Ancelotti, paving the way for his departure.

Future of Real Madrid and Brazil

Real Madrid must now appoint a new coach for the upcoming Club World Cup in June. Xabi Alonso, Bayer Leverkusen’s manager, is the leading candidate, while Santiago Solari, Real’s sporting director, favors Raúl González or Álvaro Arbeloa, the youth team coaches, as interim options.

Meanwhile, Brazil, which has been without a coach since dismissing Dorival Junior in March, hopes Ancelotti’s experience can lead them to a sixth World Cup title in 2026. Ancelotti, who had offers from Saudi Arabia and non-coaching roles, chose Brazil as his next challenge.