Real Madrid's Ancelotti agrees Brazil deal - reports

The veteran Italian has one more year on his contract with the Spanish giants but after quarter-final Champions League elimination by Arsenal and Copa del Rey defeat by rivals Barcelona, is poised to depart the Santiago Bernabeu.

Ancelotti has not hidden that a potential exit was on the cards and said his future was "a topic for the next weeks" after defeat by Barca on Saturday.

Spanish media report Ancelotti would take over ahead of 2026 World Cup qualifiers in June, leaving Madrid before the Club World Cup starts in the United States this summer.

Brazil sacked Dorival Junior after a 4-1 thrashing by Argentina in March and are fourth in the South American qualifying table for the tournament in the US, Mexico and Canada.

Ancelotti led Real Madrid to a Champions League and La Liga double last season, with Brazil stars Vinicius Junior and Rodrygo Goes vital parts of the team, and is one of the most successful coaches in the club's history.

In his first spell at Real Madrid he led them to La Decima - their 10th Champions League triumph. He has won the competition three times with Los Blancos over two stints, sacked in 2015 but returning in 2021 after Zinedine Zidane resigned.

This season Madrid have been defensively fragile and trail La Liga leaders Barcelona by four points, with a title defence their only remaining hope of major silverware. Ancelotti has also coached AC Milan, Chelsea and Paris Saint-Germain among other teams.