It's all still speculation because there has been no official statement from Real Madrid regarding Carlo Ancelotti's future. It was failure after failure that gave rise to the speculation, and it would be quite dismal for Real Madrid if they do not win even one trophy, so it is quite reasonable that many people assume that Ancelotti will be kicked out. So are the rumors about the replacement. But if it does happen, I think Jurgen Klopp is a pretty good candidate to take charge of Real Madrid.
There is still a chance to get a trophy but it really depends on the team's performance and I think it might be difficult because Barcelona is in much better condition. The rumors about Ancelloti's dismissal are not entirely true because Real Madrid themselves have not announced it. But if in the end Ancelloti will be fired, then I think Jurgen Klopp is much better than Xabi Alonso because in terms of experience he is much more proven because he has so much experience when handling Liverpool.