Carlo Ancelotti is set to leave Real Madrid at the end of the season with Xabi Alonso the heavy favourite to replace the legendary Italian.

Per The Athletic, the 65-year-old is expected to leave Real Madrid at the end of the season and take over as Brazil's new manager for the 2026 World Cup.

The report suggests that the Brazilian football federation sent representatives to watch Ancelotti's side get knocked out of the Champions League by Arsenal.

The CBF have since denied this, but Ancelotti is still said to be in talks over the move.

Former Real Madrid midfielder and current Bayer Leverkusen boss Xabi Alonso has been identified as the man to replace Ancelotti.

The Spanish giants are understood to be increasingly keen on getting a deal to bring Alonso to the club before this summer's Club World Cup in June.