Real Madrid boss Carlo Ancelotti has reportedly reached an agreement to become the new head coach of the Brazil national team from June.
There has been significant speculation surrounding Ancelotti's future, with Real Madrid's season at risk of petering out to a disappointing end.
Their Champions League defence was ended by a 5-1 quarter-final defeat against Arsenal, while they fell just short in Saturday's Copa del Rey final against Barcelona.
That represented their third loss of the season in El Clasico, after they were previously beaten 4-0 in October's league fixture and 5-2 in January's Spanish Super Cup final.
Those results have ultimately contributed to the scrutiny surrounding Ancelotti's position in the Real Madrid dugout, even though he has won the UEFA Super Cup and the FIFA Intercontinental Cup this season.
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Ancelotti agrees to become Brazil head coach
Ancelotti could still guide Real Madrid to the league title, with Los Blancos sitting four points adrift of Barcelona with five games left to play.
However, even if Ancelotti leads the club to back-to-back La Liga titles, it appears that he will leave the club a year before his contract expires in 2026.
According to journalist Fabrizio Romano, the Italian has 'reached an agreement' to become the new head coach of the Brazil national team.
The update claims that Real Madrid and Ancelotti will part ways on good terms, with a formal announcement expected in due course to confirm his departure.
Crucially, Brazil have made it clear they want Ancelotti in place to lead the team in June's World Cup qualifiers against Ecuador and Paraguay.
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Who will manage Real Madrid at Club World Cup?
As a result, Ancelotti will not coach Real Madrid at the Club World Cup in the USA and will leave his role following the final game of the domestic season against Real Sociedad.
Los Blancos will have to decide whether to head to the Club World Cup with a caretaker coach, or try to make an effort to recruit Ancelotti's replacement in time for the tournament.
Former Real Madrid midfielder Xabi Alonso is tipped to leave his role as Bayer Leverkusen head coach to take over the reins at the Santiago Bernabeu.
While Alonso is in pole position to replace Ancelotti, it is unclear whether he would be willing to take on the role in time for Real Madrid's Club World Cup opener against Al-Hilal on June 18.
If a caretaker boss is appointed, the club's director of football, Santiago Solari, is the obvious candidate to oversee first-team matters for this summer's tournament.
