Ancelotti set to renew his contract with Brazil as Real Madrid prepare to find a replacement for Xabi Alonso

After Real Madrid’s 1-2 defeat to Manchester City in the Champions League, Xabi Alonso remains in charge, contrary to rumors that he could be sacked. Although he still has the backing of most players, his future is reportedly under threat. Some sources claim that Alonso could still be dismissed if he fails to win the club’s next three matches.

One of the leading candidates to replace Xabi Alonso is Carlo Ancelotti, a former Real Madrid manager. Currently, Ancelotti is working with the Brazilian national team and is set to lead them at the 2026 World Cup. However, his contract with Brazil only runs until the end of that tournament, meaning clubs would technically still be able to approach him.

Following these rumors, new reports emerged suggesting that Brazil are eager to secure Ancelotti’s long-term future. According to Diario AS, the Brazilian Football Confederation is offering Ancelotti a four-year extension, keeping him in charge until the end of the 2030 World Cup. The same source claims that Ancelotti could sign the new deal soon, possibly even before the 2026 World Cup begins.

With the new contract, Ancelotti would remain one of the highest-paid managers in world football, earning around $10 million per year. This extension would effectively close the door on a return to Real Madrid, as Ancelotti would be 70 years old when the contract expires in 2030.

Meanwhile, Real Madrid are dealing with issues both on and off the pitch. Reports suggest that some players, including Endrick, Vinícius Jr., and Federico Valverde, are unhappy with Xabi Alonso. Although the squad still publicly shows respect for their manager, internal dissatisfaction could divide the dressing room and negatively impact results.

With Ancelotti seemingly unavailable, Real Madrid must prepare for the possibility of replacing Alonso. Two other names linked with the job are Zinedine Zidane and Jürgen Klopp, though both options appear highly unlikely. 

In the immediate future, Madrid will focus on securing victories in their next three matches against Alavés (15/12, La Liga), Talavera (18/12), and Sevilla. These games are crucial as they are the club’s final fixtures of 2025 before the three-week winter break, with Real Betis awaiting on January 4.