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.
Carlo Ancelotti is great manager and also one of the few managers you ever won every available trophy in club football and the fact that he was successful league titles in Italy, England, France and now Spain makes him extraordinary among football managers.
So it's totally understandable for the Brazilian FA to make moves that'll see him become the national team coach but I think Ancelotti will remain at Real Madrid beyond the summer because if he was supposed to leave this summer, he should've left the Spanish capital by now