Is Carlo Ancelotti leaving Real Madrid? Latest on coach's future as Brazil talks reportedly stall

Real Madrid look very likely to make a change in management ahead of next season.

Head coach Carlo Ancelotti has seen his position come under increasing scrutiny as 2024/25 has neared its conclusion. Setbacks in critical matches — the UEFA Champions League quarterfinal exit to Arsenal, and the defeats to Barcelona in the finals of the Supercopa de Espana and Copa del Rey — have proved particularly damaging.

Even though Madrid remain in the hunt for the La Liga title, it is expected that Ancelotti will be replaced, perhaps even before the FIFA Club World Cup gets underway in June.

On April 28, it seemed as though the veteran coach had secured his next job, with talks over the Brazil national-team role apparently going well. Two days later, however, things suddenly look a lot less clear.

So, is Ancelotti going to Brazil? Is he even going to leave Madrid at all? The Sporting News has the latest.

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Is Carlo Ancelotti leaving Real Madrid?

It remains likely that Ancelotti will leave Real Madrid, perhaps even before the season comes to an end, but things are not looking quite as concrete as they were.

Widespread reports this week suggested discussions between the Italian and representatives from the Brazilian Football Confederation had progressed well. It looked probable that Ancelotti could at last become the head coach of the Brazil national team after more than a year of speculation over the role.

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However, reports on April 30 indicated that the deal with Brazil could be close to collapsing, leaving Ancelotti's future less certain. While it is still expected that Madrid will have a new man in charge before the start of the 2025/26 season — and perhaps even before the FIFA Club World Cup in June — Ancelotti remains in the post for now.

Why have talks between Ancelotti and Brazil broken down?

Conflicting reports emerged around why Ancelotti's talks with Brazil seem to have hit a road block, although the most concrete pointed to Real Madrid's own intransigence over paying up the rest of his wages.

Fabrizio Romano suggested Madrid's conditions on how the coach's contract termination would be processed have caused an issue. ESPN echoed this, stating: "Madrid are unwilling to pay the remainder of Ancelotti's contract, which expires in 2026, leaving a move that seemed to be nearing completion at the start of the week at an impasse."

Globo in Brazil even claimed negotiations had stopped, with Brazil now turning back to former leading candidate Jorge Jesus. The outlet said Madrid would only allow Ancelotti to leave for the Selecao job if they did not incur a cost in the process.