Although Real Madrid has yet to officially announce his departure, sources indicate that the Italian tactician will leave Madrid after their final league game against Real Sociedad, with his tenure as Brazil boss set to begin on May 26, 2025.

Ancelotti, who has been the subject of ongoing speculation in recent months, faced mounting pressure at Real Madrid following a string of disappointing results. The team's elimination from the Champions League quarterfinals, a loss to Barcelona in the Copa del Rey final, and a crushing 4-3 defeat in Sunday's La Liga Clasico effectively ended their hopes of winning the league title.

Ancelotti's appointment marks a historic moment for Brazil, as he becomes the first foreign coach to take charge of the Selecao. In a statement, CBF President Ednaldo Rodrigues expressed his excitement over the appointment: "Bringing Carlo Ancelotti to lead Brazil is more than a strategic move. It's a statement to the world that we are determined to regain the top spot on the podium. He is the greatest coach in history, and now he is in charge of the greatest national team on the planet. Together, we will write glorious new chapters for Brazilian soccer."

In terms of compensation, sources revealed that Ancelotti will earn around 177,500 euros (197,000 dollars) per week, more than double the salary of his predecessors, Tite and Dorival Junior. Additionally, Ancelotti is set to receive a 5 million euros bonus should he lead Brazil to their sixth World Cup victory in 2026.

The move also signals a potential shift at Real Madrid, with reports indicating that the club is finalizing an agreement with Xabi Alonso, who is set to take over as head coach following Ancelotti's departure. Alonso, who played for Madrid from 2009 to 2014, including under Ancelotti during the Italian's first spell at the club, will leave his post at Bayer Leverkusen at the end of the Bundesliga season.

Ancelotti's departure has been long anticipated, as he had previously stated his intention to fulfill his contract at Madrid, which ran through June 2026. However, recent setbacks have led to increasing speculation about his future, and the Brazil job became a highly attractive proposition.

Ancelotti leaves Madrid after a season that saw the team suffer several high-profile defeats, including four consecutive Clasico losses to Barcelona across various competitions. Their Champions League exit to Arsenal, followed by a heartbreaking extra-time loss to Barcelona in the Copa del Rey, further added to the pressure on the Italian.

Despite these challenges, Ancelotti's legacy at Madrid remains strong, with the coach having won three Champions League titles and two La Liga titles during his two spells in charge.

The club has yet to announce who will lead Madrid in the upcoming Club World Cup, with their first match against Al Hilal in Miami scheduled for June 18. Meanwhile, the appointment of Xabi Alonso appears imminent, marking the start of a new era at the Santiago Bernabeu.

The CBF also expressed gratitude to Real Madrid for their role in facilitating Ancelotti's release, with a statement acknowledging the "cordiality and sportsmanship" shown by the club and its president, Florentino Perez. The CBF thanked both Madrid and Brazilian businessman Diego Fernandes, who played a key role in brokering the deal, ensuring the transition was handled with mutual respect.

As Ancelotti takes the reins of the Brazil national team, all eyes will be on his ability to guide the most successful footballing nation in history back to the top, with the 2026 World Cup on the horizon.

Carlo Ancelotti announced as new Brazil head coach