At Real Madrid I haven't heard that Real Madrid want to replace Carlo Ancelotti and also that Ancelotti still seems to be at home at Real Madrid, so I think he will stay for at least one more season with Real Madrid at least until his contract expires.
Carlo Ancelotti if leaving Real Madrid and still want to manage clubs, will receive many offers from big clubs. In his career, he succeeds in Serie A, La Liga and Bundesliga, only failed in Premier League with Everton. At his age and at the end of his coach career, he will consider offers from clubs more carefully and if he continues with clubs, I think he will return to either Serie A or Bundesliga. Returning to Serie A, getting back to his homeland is good.
Brazil itself is serious about bringing in a coach and Carlo Ancelotti is one of the candidates they are looking at to be able to handle the Samba Team. While Carlo Ancelotti still wants to stay with Real Madrid, and Real Madrid still wants him to manage, it looks like Brazil will have to wait until the end of his contract.
Carlo has never managed a national team so far and it will be good experience for him if he picks one big national team to do that. Brazil or Italy, that sounds good for a national team coach position. Carlo will have to wait till ending of Euro 2024 to see will he has chances with national teams especially Italy.
The Arab leagues have always followed the star players. I think they're going to go after the big coaches now. There is no club that does not want a name like Ancelotti. That's why we may see names like Ancelotti in the Arab leagues in the near future. He may be over a certain age and want to earn a decent amount of money. After Ronaldo, many star names can go to these leagues. Ancelotti has proven itself in Europe now it doesn't need to do anything else.
He can earn more money when he goes to a team in the Arab league for 1-2 years instead of the Brazilian or Italian national team. It's not all about making more money, of course, but Ancelotti doesn't need to prove himself anyway. He can make this choice when he does not need to prove himself.