The Italian’s previous contract was set to expire in 2024 and there had been widespread reports for several months that he was in line to take the head coach role of the Brazil national team.
Earlier this year former Brazil Football Federation (CBF) president Ednaldo Rodrigues said publicly that Ancelotti was his preferred target for the position.
Ancelotti re-joined Real Madrid in 2021 after a previous two-year spell that ended in 2015 and has led the team to 10 major trophies, including two Champions League titles, two Copas del Rey, two Club World Cups and one La Liga title.
Widely considered one of the greatest managers of all time, Ancelotti is the only coach to have won four Champions League titles and holds the record for most Champions League matches won (118), according to Real.
The 64-year-old Ancelotti is also the only manager to have won a domestic league title in all five of Europe’s major leagues – Spain, France, Germany, England and Italy.
Ancelotti led Real Madrid to Copa del Rey glory last season, though Los Blancos finished second behind a resurgent Barcelona in La Liga and was knocked out of the Champions League by Manchester City in the semifinals.
Real Madrid currently tops La Liga, ahead of second place Girona on goal difference and seven points clear of Atletico Madrid and Barcelona in third and fourth respectively.
The team comfortably topped its Champions League group, winning all six matches, and has reached the last 32 of the Copa del Rey.
Fourteen-time European Cup winner Real Madrid has been drawn against Germany’s RB Leipzig in the round of 16.
The first and second legs of the round of 16 ties will take place on February 13 and March 5.
