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Ancelotti is set to see out the remaining three games in the Spanish top flight before officially taking charge of Brazil on 26 May.

He will lead the Selecao through to the end of their 2026 World Cup campaign.

The Italian will be the first non-Brazilian coach to take charge of the Brazil national team on a permanent basis.

He leaves Madrid having won 15 trophies with the club over his two spells, making him the club's most successful manager in terms of silverware.

Ancelotti, whose current deal was due to expire in June 2026, has won the Champions League three times at Madrid. He is the coach with the most Champions League titles in the history of the competition (five) and is also the only coach to have taken part in six Champions League finals.

Ancelotti became the first coach to win titles in each of Europe's top-five leagues, following Madrid's LaLiga success in 2021-22.

He also holds the LaLiga record for the most consecutive matches without defeat: 42 games between September 2023 and October 2024 (W31 D11).

However, news of his exit from Madrid follows a 4-3 Clasico defeat to Barcelona, which leaves Los Blancos seven points adrift of their rival with only nine left to play for.

Indeed, it looks likely Madrid will be consigned to a trophy-less season for the first time in four years.

"The CBF is proud to confirm that Carlo Ancelotti will become the next head coach of the Brazilian national football team," the Brazilian Football Confederation (CBF) said in a statement.

"Mr Ancelotti, a legend of the game as the most successful manager in football history, will officially take charge following the conclusion of the 2024-25 La Liga season, ahead of Brazil's FIFA World Cup qualifying campaign in June. His official start date is May 26, 2025.

"Carlo Ancelotti arrives as the first foreign manager in the history of the Selecao. This landmark moment sees the coming together of two icons – the only five-time FIFA World Cup champions, and a coach with an unmatched record across Europe's elite competitions.

"The CBF warmly welcomes Mr Ancelotti and looks forward to a new era of success under his leadership."

Widespread reports believe former Madrid midfielder, Xabi Alonso, will replace Ancelotti at the Santiago Bernabeu, after he announced his departure from Bayer Leverkusen last week.

Ancelotti's first game in charge of Brazil will be against Ecuador on 5 June, before his first home match against Paraguay five days later.

Brazil is fourth in the South American qualifying for the 2026 World Cup, 10 points behind leader Argentina.