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.
That news was only coming from brazillian's side, but it's not coming from ancelotti itself. Ancelotti prefers to stay in real madrid rather than going to the brazil.
Ancelotti stays here for another season.
I think the media are running out of material for news so they are still reporting the obvious and that won't change until Ancelotti's contract expires next year with Real Madrid. I know that Brazil really wants Ancelotti as national team coach but he is adamant that he will stay and complete his job as coach of the Whites until his contract expires. It's a bit strange even though Ancelotti doesn't necessarily want to be the coach of the Brazilian national team but for some reason it seems as if Ancelotti agreed to do the deal.
Also, so far there are no rumors about Real Madrid replacing Ancelotti and thus, of course Ancelotti will still be at Real Madrid until the end of his contract. But yes, it is possible that later Ancelotti will also be able to accept the offer when his contract ends at Real Madrid. Because after all, besides there are no rumors to replace Ancelotti, and so far there are also no strong rumors where Ancelotti will go after becoming coach of Real Madrid and most likely becoming coach of the Brazilian national team will be his next destination.