Carlo Ancelotti 'to step down at Real Madrid' as clear favourite to replace him emerges

Carlo Ancelotti intends to step down as Real Madrid manager at the end of the season, it has been reported.

Ancelotti returned to the Bernabeu for a second spell at Real in 2021 after leaving his role as Everton manager.

He has delivered a further two Champions League titles, with Real currently reigning champions after their 2-0 win over Borussia Dortmund in last season's final.

This season, Real are top of La Liga after 20 games but lost heavily to Barcelona in the final of the Spanish Super Cup and have won only three of their six Champions League group stage games thus far.

And according to Spanish journalist Edu Pidal, of radio station Radioestadio Noche, he is set to leave the club in the summer regardless of whether they achieve even more silverware.

Pidal claims that Ancelotti's future has already been 'decided' - even if the Real hierarchy, led by president Florentino Perez, want him to honour his contract, which runs until the summer of 2026.

It is added that the Italian is not considering retirement at this stage and wants to coach 'in another country'.

Bayer Leverkusen boss Xabi Alonso has been installed as the favourite to replace Ancelotti, with the former Real midfielder having been linked with the role at one stage last summer.

Alonso was also linked with replacing Jurgen Klopp as Liverpool manager but decided to stay at Leverkusen, where he went unbeaten in the Bundesliga last season, won the DFB-Pokal and reached the final of the Europa League,

The Spaniard, who has a contract with the reigning Bundesliga champions until the summer of 2026, told reporters: "I feel this is the right place to be for me as a young coach. My job at Bayer is not over. I want to help the club, help the players to develop, the board is great. It's all fantastic here."