Carlo Ancelotti could be moving closer to extending his deal at Real Madrid - despite frequent links to the role of head coach with Brazil's national team, according to reports in Spain.
The Italian manager took the reins at the Spanish giants for the second time in 2021, and has since overseen the winning of LaLiga, the Copa del Rey, the Super Cup, the Club World Cup, and the Champions League.
But the former AC Milan manager's current deal is set to expire at the end of the 2023-24 season, with the Madrid club yet to offer him an extension.
Since April, speculation has grown that Ancelotti's next role will take him away from club football and hand him his first role coaching a national team.
Reports over the summer suggested that 'Don Carlo' was all but assured of joining the Selecao, with the head of the Brazilian FA, Ednaldo Rodrigues, confirming that Ancelotti would join ahead of leading the side's Copa America preparations.
Carlo Ancelotti could yet stay on at Real Madrid after his current deal runs out in June 2024
Real Madrid president Florentino Perez is set to talk to the manager in the coming days
Ancelotti has been heavily linked to the head coach role at Brazil's national team since summer
However, as per Marca, Real Madrid and their head coach have been quietly moving towards making a decision that could see him prolong his stay at the Santiago Bernabeu.
Ancelotti is thought to be meeting with president Florentino Perez over the coming days to discuss his future and as things stand, both head coach and club are both entirely happy with the partnership.
The work that Ancelotti has been doing at the club this season - including the development of instant superstar Jude Bellingham - is believed to have firmed up his resolve to stay on at Real Madrid.
Perez and Ancelotti are said to have been in constant discussion, but from Real Madrid's perspective, the club is not thought to have a succession plan for a potential departure.
Despite appearing to be settled at Real Madrid, Ancelotti did not disguise his glee in April when he was first linked with the legendary Brazilian side.
'I am very excited that Brazil wants me, but I have to respect the contract with Madrid, which I want to fulfil,' Ancelotti said.
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The former Chelsea manager has enjoyed a highly successful second stint at the Madrid club
The development of new players such as Jude Bellingham has further endeared the Madrid hierarchy to their coach
'If the President of the CBF wants to talk to me, I would love to meet him and greet him.'
Ancelotti already coaches a number of young Brazilian stars for Los Blancos, including Vinicius Jnr and Rodrygo.
Despite not sitting at the summit of LaLiga, Real Madrid are enjoying an invigorating start to their 2023-24 campaign.
The Spanish side are two points off surprise league-leaders Girona, and on Tuesday completed their qualifying campaign for the Champions League knockout stages with a perfect record, crowned by a 3-2 victory over Union Berlin.