Real Madrid are reportedly weighing up offering Carlo Ancelotti a new contract at Bernabeu.
The head coach's current deal with the capital giants is due to expire next summer, and he continues to be heavily linked with the managerial role at Brazil.
Towards the end of last year, Ancelotti played down the talk surrounding a move to Brazil, with Fernando Diniz still in charge of the South American nation on an interim basis.
"Brazil national team? I don't know anything about this, I don't even know what they reported in Brazil. I'm Real Madrid coach, my contract is until June 2024," he told reporters at the time.
The Italian also said last year that he will retire from managerial duties once he has left Real Madrid, but the speculation surrounding a move to Brazil has continued to gather pace over the last few months.
The 63-year-old returned to Bernabeu in June 2021 after a stint at Everton, and he enjoyed a successful 2021-22 campaign, helping the club win La Liga, the Champions League and the Spanish Super Cup.
Last season, Ancelotti guided the team to the Copa del Rey trophy, in addition to securing the UEFA Super Cup and Club World Cup.
Real Madrid have also made a strong start to this season, already booking their spot in the last-16 stage of the Champions League, while they are second in the La Liga table, two points behind leaders Girona.
According to Relevo, Los Blancos president Florentino Perez is considering offering Ancelotti the chance to extend his stay in the Spanish capital.
The report claims that Perez is 'beginning to believe that Real Madrid still needs him', and the Italian could be offered a new deal until June 2026.
Bayer Leverkusen's Xabi Alonso is allegedly viewed by senior figures at the club as the ideal long-term replacement for Ancelotti, but the Spaniard might have to wait for the position.
Real Madrid's European Cup success in 2022 saw Ancelotti become the most successful coach in the history of the competition, having now lifted the trophy on four occasions, with two of those coming at Los Blancos.
The capital team will face Napoli and Union Berlin in their final two group-stage fixtures in the Champions League this season, but their spot in the knockout round is already secure.
Real Madrid are currently facing an injury crisis ahead of their next game against Cadiz in La Liga, though, with nine players potentially missing the contest.
