Carlo Ancelotti will be the next coach of the Brazil national team, the Brazilian Football Confederation (CBF) announced on Monday, although Real Madrid have not yet made his departure from the club official.

Ancelotti — whose future has been subject to frequent speculation in recent months — came under increased pressure at Madrid since they were eliminated in the Champions League quarterfinals, beaten by Barcelona in the Copa del Rey final, and lost Sunday’s league Clásico, effectively ending the LaLiga title race.

In a statement on Monday, the CBF said Ancelotti would leave Madrid after their final game of the league season, against Real Sociedad, and take over at Brazil, with his official start date being May 26, 2025. He will be Brazil’s first foreign coach.

Sources told ESPN Brasil that Ancelotti’s salary will receive a salary of around €177,500 ($197,000) per week, more than double what either of his predecessors, Tite or Dorival Júnior, earned. Sources added that Ancelotti would be in line for a €5 million bonus if he leads the country to their sixth World Cup triumph in 2026.

“Bringing Carlo Ancelotti to lead Brazil is more than a strategic move,” Ednaldo Rodrigues, president of the CBF, said. “It’s a statement to the world that we are determined to regain the top spot on the podium. He is the greatest coach in history and now he is in charge of the greatest national team on the planet. Together, we will write glorious new chapters for Brazilian soccer.”

Sources have told ESPN that Madrid are close to agreeing a deal with Xabi Alonso to take over from Ancelotti.

ESPN reported earlier this month that the CBF — who had been keen to have a coach in place for June’s World Cup qualifiers — was willing to wait until Madrid’s fate was decided in LaLiga before making the appointment.

The Italian has long been linked with the job, although he had often insisted he intended to see out his contract at Madrid, which was due to run until June 2026.

Ancelotti is one of the most successful coaches in Real Madrid’s history. In two spells in charge, he has won three Champions Leagues and two LaLiga titles. This season, Madrid have suffered a series of high-profile defeats, including four Clásico losses to Barcelona in LaLiga — most recently in Sunday’s 4-3 defeat at Montjuïc — the Supercopa and the Copa del Rey final.

Madrid’s 5-1 aggregate elimination to Arsenal in the Champions League brought further scrutiny, followed by the 3-2 loss to Barcelona after extra time in Seville on April 26.

The club have not yet confirmed who will coach the team in the Club World Cup, where they are due to begin their participation in the tournament against Al Hilal in Miami, Florida on June 18.

On Monday, sources told ESPN that Madrid were finalising the details for Xabi Alonso, the club’s long-term top candidate to succeed Ancelotti, to take the job, after he confirmed on Friday that he will leave Bayer Leverkusen at the end of the Bundesliga season.

Alonso played for Madrid between 2009 and 2014 — including one season under Ancelotti, in his first spell in charge — and began his coaching career at the club’s academy.

The CBF on Monday also credited Real Madrid for helping broker the deal.

“The CBF extends its sincere gratitude to Real Madrid and Mr [Florentino] Pérez for the cordiality and sportsmanship shown in facilitating the coach’s release during his contract term, allowing this new chapter to begin with mutual respect,” the federation said in a news release.

“The Confederation would also like to extend its thanks to [Brazilian businessman] Diego Fernandes who facilitated and led negotiations.”

Information from ESPN’s James Olley was used in this report