Real Madrid gave Ancelotti a new contract until 2026. This means that Real Madrid still really needs Ancelotti's manpower. This means that the speculation regarding Ancelotti and Brazil is over. But I can't know if this is Madrid's move to keep getting money if they leave. Ancelotti has thanked the president of Brazilian football for being interested in using his services. It seems that Ancelotti in these words slightly indicates that he will honor the contract from Real Madrid.
Madrid announced Ancelotti's new deal through June 2026 on Friday, after repeated speculation linking him with the Brazil national team.
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https://www.espn.co.uk/football/story/_/id/39228484/real-madrid-sign-defender-january-window-ancelottiSpeculation and rumor linked Carlo Ancelotti will be Brazil manager teams on Copa America 2024 have been over after Real Madrid official announcing extended contract until 2026. I think Madrid won't losses Carlo Ancelotti depend he can manage well with current team although Madrid less actives in transfer window by signing many players. Carlo Ancelotti have special thing can manage small budget for fees transfer but success give Madrid win many tittles in last several years.
Carlo Ancelotti give good respond with Real Madrid want to keep him until 2026 because Brazilian Football Confederation (BFC) have announce will give him Brazil manager position if his contract expiry with Real Madrid on the end this season, now BFC have working hard looking for replacement Carlo Ancelotti position behind few months left before Copa America begin.