The Spanish giants suffered a crushing 5-1 aggregate defeat to Arsenal in the Champions League quarter-finals on Wednesday, intensifying scrutiny on Ancelotti.

Domestically, Real Madrid trail La Liga leaders Barcelona by four points, adding to the pressure on the Italian coach. According to Sky Sports News, Ancelotti's tenure will end after the Copa del Rey final against Barcelona on April 26, despite La Liga matches remaining in the season. "Sky Sports News understands that Carlo Ancelotti could leave Real Madrid after the Copa del Rey final on April 26," the outlet reported.

Ancelotti, whose contract runs until June 2026, has hinted at his potential exit. After the Arsenal loss, he said, "It could be this year, next year when my contract runs out. There's no problem about it. But when I am done here, I will be grateful to this club".

The 65-year-old, who has won two La Liga titles and three Champions Leagues across two spells with Real Madrid, is a top target for the Brazilian national team, with discussions expected to accelerate soon.

Initially, Bayer Leverkusen's Xabi Alonso was seen as the frontrunner to replace Ancelotti. Transfer expert Fabrizio Romano stated earlier in April, "The top target remains absolutely only Xabi Alonso. For Real Madrid, it is going to be Xabi Alonso when they part ways with Ancelotti".

However, doubts have emerged about Alonso's readiness. A report from Sport noted, "Alonso was the chosen one, but after the total crisis at Real Madrid, Florentino (Perez) doubts whether it is the ideal time to give him the reins of the team".

Leverkusen's inconsistent season, including a shock DFB-Pokal semi-final loss to third-tier Arminia Bielefeld, has further cooled interest.

Instead, Real Madrid have turned their attention to Jurgen Klopp, the former Liverpool manager. Multiple sources, including Brazilian outlet UOL and Sport, report that Klopp is frustrated in his current role as Red Bull's Head of Global Soccer, which he began in January 2025.

UOL claimed Klopp would only leave Red Bull for Real Madrid or Brazil, and Sport added that Real Madrid view him as the "ideal coach" to rival Barcelona's Hansi Flick.

Klopp, who earns approximately 12 million euros annually at Red Bull, is reportedly "willing" to negotiate with Real Madrid, marking a significant breakthrough for the club.

Klopp's potential appointment could see him reunite with Liverpool's Trent Alexander-Arnold, who is expected to join Real Madrid as a free agent in 2025. The German's track record, including a Premier League title and Champions League triumph with Liverpool, makes him a compelling choice for a club desperate to reclaim dominance.

Neither Real Madrid, Ancelotti, nor Klopp have issued official statements on these developments. However, the mounting pressure and emerging reports suggest a bold new era is on the horizon for the Bernabeu.

Report: Jurgen Klopp storms into Real Madrid's sights as Carlo Ancelotti faces axe