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Carlo Ancelotti’s deal with Brazil reportedly takes last-minute U-turn due to delayed Real Madrid exit

Carlo Ancelotti, Head Coach of Real Madrid, looks on during the LaLiga match between Getafe CF and Real Madrid CF at Coliseum Alfonso Perez on April 23, 2025 in Getafe, Spain.
© Denis Doyle/Getty ImagesCarlo Ancelotti, Head Coach of Real Madrid, looks on during the LaLiga match between Getafe CF and Real Madrid CF at Coliseum Alfonso Perez on April 23, 2025 in Getafe, Spain.

Carlo Ancelotti has been strongly linked to the Brazil national team head coach position amid reports of his expected departure from Real Madrid at the end of the season. Although the Italian manager appeared willing to take the job, his future has reportedly taken a dramatic turn due to a delayed exit from the Spanish club.

Following disappointing results in the UEFA Champions League, the Spanish Super Cup, and most recently the Copa del Rey final loss to FC Barcelona, Real Madrid executives were reportedly ready to part ways with Ancelotti. The coach had verbally accepted an offer to take over Brazil’s national team, but an unexpected twist has now jeopardized the agreement.

According to Globo Esporte, Real Madrid, fully aware of the talks between Ancelotti and the Brazilian Football Confederation (CBF), rejected the idea of paying a release fee to terminate his contract. With his situation still unresolved in Madrid, the CBF has reportedly decided to withdraw its offer.

Ancelotti returned to Real Madrid in 2021 and signed a contract extension in 2023 that runs through June 2026. Despite this, the club’s leadership has made it clear they do not intend to move forward with the Italian coach beyond this season and would be open to releasing him from his contract—just not at a cost.

Knowing there was already a verbal agreement with Brazil, Real Madrid reportedly refused to pay Ancelotti to end the deal early, stating they would only release him without financial compensation. As a result, the stalled negotiations have led Brazil to begin exploring other coaching options.

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Xabi Alonso’s first decision following Ancelotti’s departure from Real Madrid

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Who will coach Brazil now?

Ancelotti had long been the top target of CBF president Ednaldo Rodrigues, who even sent representatives to attend Real Madrid matches in an effort to secure the coach’s signature. With the deal reportedly off the table, one name has quickly emerged as the front-runner.

Portuguese manager Jorge Jesus is now considered the favorite to lead the Seleção. Currently in charge of Saudi Arabian powerhouse Al Hilal, Jesus is under contract until June 2025—just ahead of Brazil’s upcoming competitive fixtures. Viewed as the top alternative to Ancelotti, the highly respected coach may now be in prime position to take the reins.

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