Carlo Ancelotti is on the verge of exiting his role as head coach of Real Madrid, with strong indications pointing towards a move to lead the Brazil national team.

According to reports from The Athletic, Brazil has set its sights on Ancelotti to help steer the team into the 2026 World Cup. He has emerged as the top candidate for the coaching vacancy, alongside Jorge Jesus, the current head coach of Al Hilal. The Brazilian Football Confederation (CBF) has even deemed Ancelotti as “the president’s dream.”

While Ancelotti has various potential career paths, including a non-coaching role at Madrid, his heart seems set on the Brazil opportunity. The samba squad is actively seeking a new coach after parting ways with Dorival Junior last month.

Although Ancelotti has assured fans that he’d only depart if the Madrid board decides so, negotiations with the CBF are reportedly well underway. An emissary from the CBF was seen at Madrid’s recent Champions League clash against Arsenal, hinting at serious talks with Ancelotti this week.

However, the CBF has denied sending any representatives to Madrid, stating that all discussions are confined to the executive general coordinator of the national teams, Rodrigo Caetano, and president Ednaldo Rodrigues, who are based in Rio de Janeiro.

Brazil is eager to finalize a new head coach ahead of the next international break, as they aim to kickstart their qualifying campaign for the 2026 World Cup. Meanwhile, Real Madrid must clarify their managerial status before participating in the newly-expanded Club World Cup starting June 14.

Following their exit from the Champions League at the hands of Arsenal, Madrid is still in contention for a domestic double — trailing Barcelona by seven points in La Liga with seven matches remaining, although they have a game in hand and still face Hansi Flick’s squad.

With whispers of Xabi Alonso, Bayer Leverkusen’s head coach, being a prime candidate to fill Ancelotti's shoes, the future of both clubs hangs in a delicate balance as they prepare for crucial upcoming matches.