French newspaper 'Le Parisien' has reported that Real Madrid and Carlo Ancelotti have reached a verbal agreement that will see the Italian taking over as coach of 'Los Blancos' next season.
Madrid president Florentino Pérez has long been an admirer of Ancelotti, the current coach of Paris Saint-Germain, and the Italian's future in France is up in the air, with speculation linking Arsenal manager Arsene Wenger and Madrid boss José Mourinho to the job.
According to 'Le Parisien', Ancelotti is relaxed about his future, as he has received a number of offers from high profile clubs. Liverpool and Manchester City are believed to have made contact with him in December, but it is the job at the Santiago Bernabéu which he is more interested in than any other.
Madrid wanted to hire Ancelotti in 2009 immediately after Florentino won the club's presidential elections. The Italian has a clause in his contract which guarantees him a new deal with PSG should the club finish in the top three in Ligue 1 this season, but he has admitted he would be open to leaving the club.
"If the club are not happy with me, I will have no problem in leaving," he said in an interview with L'Equipe.
The 53-year-old has not spent a season without a club since he began coaching in 1995. Since then he has coached Reggina, Parma, Juventus, AC Milan, Chelsea and PSG.
He enjoyed his most successful period with Milan, who he coached between 2001 and 2009 and where he won two Champions Leagues, one Serie A title, the Club World Cup, and two European Super Cups.