Real Madrid and Carlo Ancelotti have finally agreed to part ways after agreeing to terms that will see te Italian depart the Bernabeu.
Veteran coach Carlo Ancelotti and Real Madrid have reportedly agreed on the terms of his exit.
The Italian's future has been a consistent theme in Madrid's topsy-turvy season, with former iconic midfielder Xabi Alonso having long been touted as his successor.
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Ancelotti, who was in his second stint at the Santiago Bernabeu, was linked with the vacant Brazil job but has since reportedly turned down the offer to lead them into the 2026 World Cup.
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Real Madrid will still have to pay Ancelotti for next year as his contract only expires in 2026 and that has factored into the delay over negotiations according to the Daily Mail.
His exit is set to be confirmed before the end of the season and could even be announced just after Sunday's El Clasico, which Madrid must win to have a realistic hope of retaining the LaLiga title.
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Alonso is widely seen as his natural successor after three brilliant seasons with Bayer Leverkusen. Alonso, who enjoyed a trophy-laden career with the Los Blancos, led Leverkusen to the Bundesliga and DFB-Pokal titles last season and the only game they lost was the Europa League final to Atalanta.
Ancelotti's next move is unclear after he reportedly turned down Brazil. Reports indicate that he contacted the president of the Brazilian federation, Ednaldo Rodrigues, to inform him of his decision. It claims Ancelotti's U-turn came after uncertainty emerged over when he could potentially start his role with Brazil.
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Brazil believed he would be allowed to leave Real in June, but Ancelotti is understood to have told the federation that he would not take up his position until August. Barring another major change of heart, Ancelotti will now not become Brazil's next manager, and could still lead Real in this summer's Club World Cup.
Ancelotti is still set to leave the Spanish giants ahead of next season, and is believed to be considering a huge offer to manage in Saudi Arabia.
Ancelotti's Madrid record
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Ancelotti, 65, has faced pressure this season despite being one of the most decorated managers ever, and bringing immense success to the Santiago Bernabeu.
In two stints managing the Spanish giants, he has won 15 trophies, including three Champions League and two LaLiga titles.
However, trailing Barcelona in the league, losing in the Copa del Rey and Supercopa de Espana finals, and crashing out of the Champions League quarter-finals to Arsenal appears to have brought down the axe.