According to a bombshell report from Brazilian outlet Globo Esporte, the Brazilian Football Confederation (CBF) has officially ended negotiations with Italian tactician Carlo Ancelotti regarding the national team head coach role for the 2026 FIFA World Cup.

The move comes after Real Madrid president Florentino Pérez reportedly made a dramatic U-turn, refusing to release Ancelotti from his contract early.
Underwhelming Season Prompts Exit Plans
Real Madrid’s underperformance across all competitions this season has cast doubt over Ancelotti’s future. The club has already suffered defeats to arch-rivals Barcelona in both the Copa del Rey and the Spanish Super Cup.
They were eliminated in the Champions League quarterfinals and currently trail in the La Liga title race — all of which has led to speculation of a managerial shakeup in the summer.

Sources close to the club reveal that Ancelotti, aware of Madrid’s intent to part ways at the end of the season, began informal discussions with the CBF months ago.
The Brazilian federation had identified the veteran coach as their top target to lead a new cycle through to the 2026 World Cup.
In fact, the CBF even dispatched senior representatives to Spain to accelerate the process and negotiate face-to-face.
Ancelotti Requested Severance; Florentino Said No
Despite having one year left on his contract with Real Madrid, Ancelotti had reportedly hoped the club would allow him a dignified departure — including a symbolic severance package.
Early reports from Spanish media suggested that Madrid were open to such an arrangement, acknowledging the Italian’s previous success with the club.

However, everything changed after Spanish outlets, including Marca, broke the news that Ancelotti had already agreed terms in principle with Brazil.
Florentino Pérez, angered by what he perceived as premature negotiations, took a hardline stance: Madrid would not pay any severance and would block his departure until after the FIFA Club World Cup in December.
Timeline Clash Ends Talks — CBF Turns to Jorge Jesus
The impasse over timing proved decisive. The CBF was adamant that their new head coach must be in place by early June to oversee the start of Brazil’s World Cup qualifying campaign.
With Madrid unwilling to release Ancelotti before the Club World Cup, the Brazilian federation reluctantly pulled the plug on negotiations.
According to Globo Esporte, Brazil have now shifted their attention to Portuguese coach Jorge Jesus, who is currently in charge of Saudi club Al Hilal.

A respected figure in South American football, Jesus has long been viewed as a viable Plan B and has previously expressed interest in coaching the Brazilian national team.
Ancelotti’s Future at Madrid Still Uncertain
Despite Madrid’s desire to retain Ancelotti until his contract expires in 2025, internal discussions about his successor are already underway.
Among the top candidates is Bayer Leverkusen’s head coach Xabi Alonso, a former Real Madrid midfielder enjoying a breakout managerial career in the Bundesliga.
For Ancelotti, the breakdown in talks with Brazil is a significant setback. After preparing for what could have been the final chapter of his legendary career on the international stage, the Italian now finds himself in limbo — still under contract with Madrid, but potentially without a long-term role at the club.

With both club and country plans in flux, Ancelotti’s coaching future remains one of the most intriguing storylines ahead of the summer.
Whether he stays at the Bernabéu or moves on, one thing is clear: his next step will be watched closely across the footballing world.