Carlo Ancelotti reached an agreement in principle with the Brazilian Football Confederation (CBF) to become the next head coach of Brazil's men's national team, reports transfer insider Fabrizio Romano.
Ancelotti would depart Real Madrid this summer, before the Club World Cup, and begin his duties with Brazil in June, according to Romano. That would give him roughly one year to prepare the team for the 2026 World Cup, for which Brazil is yet to officially qualify.
He'll reportedly be one of the highest-paid managers in international soccer.
ESPN reported Sunday that the Italian manager will meet with Real Madrid president Florentino Perez in the coming days to discuss his potential exit from the club, with the expectation being that the parties will agree to part ways after Madrid's final game of the La Liga season on May 25.
Ancelotti's contract with Los Blancos runs until 2026, but he's continuously been tipped as the next manager of Brazil's men's national team. Ancelotti has reportedly been the preferred choice of CBF president Ednaldo Rodrigues ever since Tite stepped down as Brazil's coach after the 2022 World Cup.
Brazil fired Dorival Junior in March, and ESPN reported last week that the CBF and Ancelotti's camp had re-engaged in talks about a contract.
Ancelotti is one of the most successful coaches in Real Madrid history, but his position has come under increasing scrutiny following Madrid's exit from the Champions League and Saturday's loss to bitter rivals Barcelona in the Copa del Rey final.
"Whether I continue (at Madrid) is an issue for the coming weeks, not for today," Ancelotti said when asked about his next move following Saturday's 3-2 extra-time defeat.
Madrid, who won both La Liga and the Champions League last season, are second in Spain's top flight behind Barca this year and need to overturn a four-point deficit over their final five games.
If Ancelotti does indeed depart immediately after the La Liga season ends, Real Madrid will need to find a coach for this summer's Club World Cup.
An internal hire would likely be made on an interim basis in that case. Director of football Santiago Solari, Castilla coach Raul Gonzalez, or under-19 boss Alvaro Arbeloa are all among the potential short-term options, according to ESPN.