Xabi Alonso deserves to be appreciated by giving a new contract extension because he managed to rebuild Leverkusen strength after having slumped to the bottom of the standings last season. Xabi Alonso has progressed well enough in his coaching career to make the Leverkusen management give him a new contract.
Next season will be proof for Xabi Alonson to bring Leverkusen to compete in the top 4. because if he succeeds in bringing Leverkusen to compete in the top 4, then Xabi Alonso target for Leverkusen in the next season will be quite successful. There is indeed interest from real madrid for him when ancelotti leaves later then Xabi Alonso becomes the coach that will be shown by the management of Real Madrid.
Xabi Alonso has become one of the successful coaches of several other young coaches, he has a good strategy in utilizing existing players, thus making Leverkusen manage to finish sixth in the standings. Giving a new contract will make Xabi Alonso's job longer there and it depends on how they achieve results in the next season when the Bundesliga starts. The next target is to bring Leverkusen to finish in the top three in order to enter the Champions League in the coming season.
When Xabi Alonso succeeds in doing this difficult job, it is not impossible that many big clubs will want to bring him in as the main coach. Real Madrid are very close to Xabi Alonso and he is also one of the best players to ever play for Real Madrid, so it would be easy for him to return there as a coach.
During his playing days, Alonso was known for his exceptional passing range, vision, tactical intelligence, and defensive abilities. Thats why i believe he make a good journey for real madrid.