Well it seems that with this Madrid is the last club for him to coach and it is also likely that Brazil is the last national team he coaches.
But on the other hand, now of course Madrid must be more selective in finding a successor to Ancelotti. One season before they part ways is a long time but it can also be very short so Madrid need to find some candidates that they think are worthy.
Ancelotti at least succeeded in bringing Real Madrid to have several championships even though for this season he failed to make Madrid have the Champions League title.
Now there is only one year left of his contract as Madrid coach and it seems true that he might retire as a coach and what is clear is that Madrid will not extend his contract as coach.
From now on, Madrid must prepare who they will appoint as the next coach because it would be a shame if Madrid did not get a much better coach than Ancelotti.