Carlo Ancelotti’s second spell as Real Madrid manager will come to an end at the close of the season, with the Italian tactician set to take charge of the Brazilian national team.

Although Ancelotti’s contract at the Santiago Bernabéu runs until 2026, The Athletic reports that a decision has already been made regarding his departure.

Real Madrid’s recent setbacks a 3-2 defeat to Barcelona in Saturday’s Copa del Rey final and a Champions League elimination by Arsenal earlier this month  have added to the growing sense of an impending change. With five games remaining in LaLiga, Madrid trail Barcelona by four points, and these fixtures are expected to be Ancelotti’s final matches in charge.

Brazil, who have long pursued Ancelotti, are now poised to finalize the appointment. According to The Athletic, he will assume the role once Madrid's league campaign concludes, meaning he will not oversee the team during this summer’s Club World Cup.

Diego Fernandes, an intermediary for the Brazilian Football Association, was again seen at Saturday’s Copa del Rey final in Seville and is understood to have held further discussions with Ancelotti. Brazil have been keen to secure his services following the dismissal of Dorival Junior, who was sacked after a 4-1 World Cup qualifying defeat to rivals Argentina last month.

Fernandes has spent considerable time in Spain over recent months, trying to persuade Ancelotti to take the Brazil job in time for their upcoming World Cup qualifiers against Ecuador and Paraguay in June — even if it means missing Real Madrid’s Club World Cup campaign.

Meanwhile, former Real Madrid star and current Bayer Leverkusen manager, Xabi Alonso, is being strongly tipped as a leading candidate to succeed Ancelotti at the Bernabéu.