CARLO Ancelotti will leave Real Madrid at the end of the season after agreeing a deal to become the new national head coach of Brazil.
The 65-year-old Italian will begin his new role on May 26, one day after Real’s final La Liga game of the season at home to Real Sociedad.
His exit comes after Sunday’s 4-3 El Clasico defeat to arch rivals Barcelona left Real seven points behind the league leaders with just three games remaining.
The defeat means it is almost certain that Real will end the season without a trophy for the first time in four years
Ancelotti will leave the Santiago Bernabeu as one of Real’s most successful ever managers. Over the course of two spells with the club, he won 15 trophies, including three UEFA Champions League titles.

He will now become Brazil’s first ever permanent foreign head coach ahead of World Cup qualifiers against Paraguay and Ecuador next month.
Ancelotti will move into international management for the first time after becoming the first and only coach to win each of Europe’s top-five leagues. He completed the unprecedented feat with Real, Chelsea, Bayern Munich, Paris Saint-Germain and AC Milan respectively.
Los Blancos are set to replace Ancelotti with Xabi Alonso after the former Real, Liverpool and Spain midfielder announced on Friday that he was leaving German side Bayer Leverkusen.
Higher-ups at Real want Alonso, 43, in place ahead of the inaugural revamped Club World Cup. Real’s first game is against Saudi side Al-Hilal in Miami on June 18.
READ MORE: Xabi Alonso quits German club before expected return to Real Madrid as coach

Last year, Alonso’s Leverkusen side shocked German giants Bayern Munich by winning the Bundesliga title without losing a single game.
Alonso has close ties to Real having played for the club between 2009 and 2014. The Basque coach is also regarded as one of the most promising tacticians in world football.
According to reports, Alonso will sign a three-year contract with the Spanish giants. An announcement on Alonso’s arrival is expected shortly.