The move signals the end of a trophy-laden era for Los Blancos, who face a transitional summer after a trophyless campaign.

Ancelotti, who has guided Real Madrid to three Champions League titles, two La Liga crowns, and a host of other honours across two spells, has faced mounting pressure this season. Defeats have piled up, with a 5-1 aggregate thrashing by Arsenal in the Champions League quarter-finals proving a low point. A 3-2 extra-time loss to Barcelona in the Copa del Rey final further eroded confidence, leaving the UEFA Super Cup and Intercontinental Cup as Madrid's only silverware this term.

Despite trailing Barcelona by four points in La Liga with five games left, including a pivotal El Clasico on May 11, the club's hierarchy have reportedly decided to part ways with Ancelotti. "The club decides to replace me, and maybe it could be this year," Ancelotti said after the Arsenal defeat, hinting at his uncertain future.

Brazil's Football Confederation (CBF) have long coveted Ancelotti, with president Ednaldo Rodrigues calling him their "dream" coach. Talks intensified in recent weeks, with emissaries reportedly meeting Ancelotti's camp in Madrid. According to transfer expert Fabrizio Romano, Brazil are "confident" of securing Ancelotti before June's World Cup qualifiers against Ecuador and Paraguay. The deal, yet to be signed, will see Ancelotti become one of the highest-paid national team coaches, with a contract extending beyond the 2026 World Cup.

Ancelotti's departure, expected after Madrid's final La Liga match, leaves the club scrambling ahead of the Club World Cup in the United States.

Xabi Alonso, the former Madrid midfielder and current Bayer Leverkusen boss, remains the frontrunner to replace him. Alonso, who led Leverkusen to an unbeaten Bundesliga and German Cup double last season, is "in pole position," per journalist Mario Cortegana. However, his arrival may be delayed until after the tournament due to his Leverkusen contract, which includes a clause allowing a move to Madrid.

In the interim, director of football Santiago Solari, a former Madrid player and interim coach in 2018-19, is likely to oversee the team at the Club World Cup. "Santi Solari is the obvious candidate," a source told Sports Mole, highlighting his readiness to step in.

As Ancelotti prepares to reunite with Madrid's Brazilian stars like Vinicius Junior and Rodrygo, Los Blancos face a defining moment. The coming weeks will shape their future, with the hope that a new manager can restore their dominance.

Report: Carlo Ancelotti's Real Madrid exit looms as Brazil beckon