Carlo Ancelotti’s second spell as manager of Real Madrid appears to be drawing to a close. Following Saturday’s Copa del Rey final defeat to Barcelona, it has become increasingly evident that he will not continue in his role beyond the end of the season — and now, that outcome seems even more certain.

Ancelotti’s future has long been complicated by the Brazilian Football Federation’s interest in appointing him as head coach of the national team. However, rather than causing conflict, this interest has seemingly led to a situation that suits all parties involved.

The Italian is reportedly open to taking charge of Brazil, where he would manage current Real Madrid stars such as Vinícius Júnior, Rodrygo Goes, and Endrick Felipe. According to journalist Fabrizio Romano, Ancelotti has now reached a verbal agreement in principle to take on the role once the La Liga season concludes.

Brazil have stipulated that Ancelotti must assume the role by the start of June, which means his contract would take effect then. Consequently, he is almost certain not to manage Real Madrid during this summer’s FIFA Club World Cup, set to be held in the United States from mid-June to mid-July.

Ancelotti is expected to remain in charge of the Brazilian national team until the conclusion of the 2026 FIFA World Cup, provided the Seleção qualify. That tournament will also take place in North America. It is widely believed that this will be Ancelotti’s final position in football, given his previous statements expressing his intention to retire following his tenure at Real Madrid.

Despite the imminent separation, Ancelotti and Real Madrid are expected to part ways amicably. Club president Florentino Pérez is said to be highly appreciative of Ancelotti’s achievements during his two spells at the club, and there is no suggestion of any bad blood as they prepare to end their working relationship at the conclusion of the domestic campaign.