There are still news regarding Ancelotti to become Brazil manager soon. Brazil must be making a decent effort to convince him to manage themselves. After Tite's period has ended Brazil really need a trustworthy and successful manager to play bigger for championships finally. Ancelotti is obviously one of those candidates to lead this team to victories.
However I don't know what goes around Ancelotti's mind. He has one more year on his contract with Real Madrid. Maybe he would think of staying for that season as well and lead this team to get stronger with new additions in the summer.
Based on this
news Ancelotti will stay at Real Madrid, maybe he will still spend the rest of his contract at this club and after that announce what the next steps are, of course Real Madrid will also try to convince this experienced coach to stay at the club before finally looking for a replacement who can also still makes Real Madrid a successful club in many competitions. If Ancelotti still chooses Real Madrid and Brazil looks for another coach, Ancelotti will still be in demand by many clubs because his experience is a guarantee that he will be able to provide success for the clubs he will coach.