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.
It seems quite obvious to me that Ancelotti will remain at the club - in the end, with the crisis Real (in the crisis of which he is not to blame at all), he reached the semi-finals of the Champions League and even lost La Liga, but overall it was a good year. If he had such results with the transfers that he requested and would have received, then it would be a different matter, but Mbappe remained at PSG and Real refused to fight for Haaland.
And I do not believe that Ancelotti himself can leave (without dismissal or not renewing the contract) from Real to the national team (of any country). Club football >> national team football if we are talking about top clubs.
If we look at Real Madrid, it definitely feels like a managerial job at Real Madrid is far bigger compared to a job in any national team. Real Madrid also wanted to get Mbappé in the team. But he really did not want to let go of the huge amount of money he was getting from PSG.
That is the only reason why Mbappé moving to Real Madrid did not happen. Otherwise, it was going to be one of the biggest transfers of that time because Real Madrid was ready to pay 200 million for him to PSG.
And anyway, after that, Real Madrid also did not go after Erling Haaland's goals. The potential opponent was Manchester City. Real Madrid had to pay a huge amount of money for him which I believe they did not want to. And at the same time, Benzema was performing really well. Probably Real Madrid thought that they can go with him being the only striker for one more season. That’s where they made the mistake.
Anyway, I think in the next season Carlo Ancelotti, going to bring in a good striker. He's also going to go for both the La Liga title and also the Champions League title as well.
To some of these coaches, it is not about where will pay better but it is the prestige for them. Zidane was doing great in Real Madrid and a time he left, came back and still did well and willingly left again but report has it that he has been lobbying for France national league.
So, the coaches most times chase the prestige. It will be an honour to Ancelotti to have coached the greatest football nation .
Priority to the coaches is what matters especially to big coaches.