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This is good news to Real Madrid and an unpleasant one for the Brazilian National team. There were speculations that Carlo Ancelotti would be joining Seleção Canarinha next year, but this news has ended these rumours. I was sceptical about the news because I don't see any reason why Real should be worried about signing Xabi Alonso. The Italian tactician has not been doing badly in both the La Liga and the UEFA Champions League, so they shouldn't be in a haste to sack the coach. He deserves to even have a longer contract because Real will be happy to keep him. Many clubs will be willing to sign Ancelotti immediately if he is allowed to leave the Los Blancos. There is no guarantee that Xabi Alonso will perform well in Real Madrid, after all, Erik ten Hag was successful at Ajax but is struggling at Manchester United.

If these rumors are true, Real Madrid are so satisfied with Ancelotti's performance that they have signed him with a new contract. Ancelotti's contract extension at Real Madrid is bad news for the Brazilian national team, which really wants to bring in Ancelotti. Another reason Real Madrid does not want to immediately part ways with Ancelotti is because his departure will have an effect on the team's performance.
It looks like Xabi Alonso will continue with Bayer Leverkusen if Ancelotti stays at Real Madrid, this is also very good for Xabi Alonso in expanding his experience as a coach.

The news already calms down the speculations of Carlo Ancellotti moving out of the club. I also had the feeling he has won enough tittles with the club level and that it's enough time to see him leaving for a much younger but Perez and the Don had a much different thought. They'll achieve and win more Champions League with him even with these young lads.

Xabi Alonso would do well and same with Erik Ten. They're coaches that knows how to manage younger players. We've seen from Ajax and the other right now from Xabi Alonso.
He could go ahead to win the German Bundesliga League Competition for the first time with them.

Ancelotti extended his contract with Real Madrid as he wants to make the team more stable and stronger. Although Real Madrid's performance is good, their squad is still not good enough. We see Vini and Rodrygo's poor performances in every match. Bellingham's excellent performance is the reason for Madrid's consistent performance. Ancelotti will likely bid farewell to Real Madrid fans after stabilizing Madrid's attack.

Xabi Alonso is an excellent coach. He took a mediocre team like Leverkusen to the top of the Bundesliga and Europa League. And Leverkusen's performance was made possible by Xabi's excellent tactics. There is a big chance of seeing Xabi as a Premier League coach next season.