The biggest news in the transfer market right now is Carlo Ancelotti's contract extension at Real Madrid. As far as I know Carlo Ancelotti has extended his contract with Real Madrid until 2025 which means we heard rumors in the past that Carlo Ancelotti will leave Real Madrid for Brazil but that rumor may not be true. But one thing I don't understand is how to extend the contract with another club when you already have a contract with one team. However, if Carlo Ancelotti has indeed extended his contract with Real Madrid, Brazil are going to miss out on a great opportunity to play under Carlo Ancelotti.
If the renewal of his contract at Real Madrid if as true as you have stated then he will definitely not have a contract at Brazil again because he can't be coaching two teams at same time, earlier there were speculations to the point it sound like it was a done deal about ancelotti moving to the Brazilian team and that's why it's such great news about his contract renewal.
The Brazilian team will really be disappointed this deal couldn't pull through as there were expectations which were accorded the arrival of ancelotti but with this disappointment they will have to probably look into another coach and there will be change of expectations aswell. I feel since Xabi who was Madrids biggest coaching prospect was not willing to leave Leverkusen at the moment they have to conform with ancelotti extending his contract.