The Brazilian Football Confederation (CBF) on Thursday extended its deadline for Carlo Ancelotti to take over as men’s national team coach, sources told ESPN, and is willing to wait until Real Madrid‘s fate is decided in the LaLiga title race.
Madrid are currently four points behind leaders Barcelona with five games left to play, with the two sides set to go head-to-head in another Clásico clash on May 11.
In the meantime, sources told ESPN that there remains a stand-off between Ancelotti and Madrid over the manner and timing of his departure from the club, which needs to be resolved before the Italian could accept the Brazil job.
The CBF are keen to have a new coach in place on May 26, when the latest Brazil squad for World Cup qualifiers in June against Ecuador and Paraguay will be named.
ESPN reported earlier this week that Ancelotti and club president Florentino Pérez are expected to meet to discuss the situation in the coming days.
Ancelotti had appeared to be close to an agreement with the CBF — he has been their long-term, preferred candidate to take over ahead of the 2026 World Cup — but financial wrangling over his Madrid exit is now proving to be a stumbling block.
Madrid’s last game of the LaLiga season, against Real Sociedad, will be played on either May 24 or 25 at the Bernabéu.
The financial terms of Ancelotti’s departure would vary depending on whether the coach is fired — after a spell which has seen the team eliminated in the Champions League quarterfinals, and beaten in the Copa del Rey final — or leaves to take the Brazil job.
A source told ESPN that Ancelotti, who has a contract until June 2026, risks a significant reduction in his settlement from Madrid if he leaves to take charge of Brazil, with the club expecting compensation from the CBF in exchange for releasing the coach from his contract.
Madrid customarily pay managers a six-month severance package when they are dismissed, regardless of the length of their remaining contract, the source said.
Another source told ESPN that a possible compromise would see Madrid paying Ancelotti a percentage of his remaining salary, with Brazil making up the shortfall.
Although Ancelotti is the CBF’s preferred choice as coach — and he has been made aware of that fact — they are also considering alternatives such as Al Hilal‘s Jorge Jesus and Palmeiras’ Abel Ferreira, sources said.
Information from ESPN’s Mark Ogden contributed to this report