Carlo Ancelotti has decided not to continue as head coach of Real Madrid beyond the current season, a Spanish news outlet reported.

Real Madrid manager Carlo Ancelotti is set to leave the club in the summer, with Bayer Leverkusen boss Xabi Alonso the favourite to replace the Italian, Onda Cero said.

Despite having a contract that runs until 2026 and the potential for a successful end to the campaign, Ancelotti has expressed his desire to “conclude” his tenure with the club this summer.

The Italian coach, who renewed his contract in December 2023 amid speculation about interest from the Brazilian national team, has enjoyed significant success during his second stint at Madrid, becoming the club’s most decorated manager.

His achievements include winning two La Liga titles, two Champions League trophies, a Copa del Rey, and several Super Cups.

Ancelotti has reportedly acknowledged that his decision was not solely his own, as it also depended on the club’s direction. But he is “determined to step down” regardless of the season’s outcome.

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While he has found great happiness in Madrid, he is not considering retirement and intends to continue coaching in another country, though not in Brazil.

Alonso, the Bayer Leverkusen manager, has emerged as the leading candidate to succeed Ancelotti at Real Madrid next season, although his future remains uncertain as the campaign progresses.