Carlo Ancelotti's Real Madrid future is 'all but sealed' with huge name 'knocking on the door' to become manager

Veteran manager Carlo Ancelotti's future at Real Madrid is reportedly hanging in the balance, with a massive replacement lined up.

On Tuesday, Real Madrid suffered an embarrassing shock loss in the Champions League as Arsenal thrashed the European giants 3-0 in London.

Although the result does not guarantee Madrid's exit from a competition that they have won more than any other club, it means they will have an incredibly difficult task in the second leg at the Bernabeu.

And such a shocking result may have a major impact on Ancelotti's future, with one report claiming a decision on what's next for the Italian is 'all but sealed.'

For over a year, reports have claimed that Ancelotti's time at Real Madrid could be coming to an end, with the Spanish giants linked with several other managers, while Ancelotti has been strongly linked with the Brazil national team.

But a new report from Spanish outlet Relevo, has claimed that Ancelotti's departure may finally be imminent, and the club has already identified their ideal target to replace him.

The report claims: "In this last week, with the setback against Arsenal and the home defeat to Valencia, Ancelotti's future is all but sealed . Waiting for the penultimate miracle.

"But now with Xabi Alonso knocking on the door."

In their assessment of Ancelotti's campaign so far this season, they added: "The Real Madrid coach hasn't found the key at any stage of the season.

"He hasn't found the game, the attitude, or the feeling, and what's more serious: his 2024-2025 Real Madrid still doesn't convey the quality of the team."

Real Madrid suffered potentially their worst loss of the season as Arsenal beat them 3-0 in the Champions League. (Image: Getty)

They claim that because of this, club officials were already considering sacking the 65-year-old several months ago and replacing him with Xabi Alonso.

But a report from fellow Spanish outlet Don Balon has taken this even further, claiming that Real Madrid President Florentino Perez has already decided conclusively that Ancelotti will be sacked at the end of the season.

The report states that Perez held a meeting with his directors, that lasted over two hours and finished with them deciding to terminate Ancelotti's contract a year early and that there will be no turning back on this decision, even if Ancelotti miraculously wins the Champions League and La Liga.