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.
Source:
https://www.espn.co.uk/football/story/_/id/39228484/real-madrid-sign-defender-january-window-ancelottiThis will indeed be the best news for all Real Madrid fans. But this is bad news for the Brazilian national team, which was rumored to be coached by Ancelotti after his contract expired this season. But it turns out that Real Madrid really doesn't want to let go of their best coach. And this is understandable. Because I think Ancelotti is really needed there.
And currently Ancelotti can actually be said to be the best coach in the world along with Pep Guardiola. So it is very natural that a club will have great difficulties when a good coach like Ancelotti leaves behind. So maintaining it will definitely be a priority. But the steps taken by Real Madrid are always quiet. Because previously there were no rumors indicating that Real Madrid would extend Ancelotti's contract.