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-ancelottiI think Ancelotti is a very good coach. Perfect fit for Real Madrid. That's why I think contract extensions were the best decision. With the decision to extend the contract for 2 years, Real Madrid took an important step to ensure stability. As far as I can see, all the players are happy with his management. It's a good decision for the peace of the team.