Source: Brazil expands Ancelotti deadline in Madrid deadlock

Sources told ESPN that the Brazilian Football Federation (CBF) extended the deadline for Carlo Ancelotti to take over as men's national team coach on Thursday and was willing to wait until Real Madrid's fate was decided in the championship game in Laliga.

Madrid is currently four points behind Barcelona's leader with five games left, with the sides facing another clash with Krasico on May 11.

Meanwhile, sources told ESPN that Ancelotti and Madrid still had a deadlock in the way and timing of his departure from the club and that it would need to be resolved before he could accept the job in Brazil.

The CBF is eager to build a new coach on May 26, when Brazil's latest team will be named in the June World Cup qualifiers against Ecuador and Paraguay.

ESPN reported earlier this week that Ancelotti and club president Florentino Pérez are expected to discuss the situation in the coming days.

Ancelotti seems to have reached an agreement with the CBF – he is their long-term, preferred candidate to take over the 2026 World Cup football game – but now it has proven that his financial dispute over Madrid exports has proven to be a stumbling block.

Madrid's final match against Real Sociedad in Laliga season will be held at the Bernabéu on May 24 or 25.

The financial terms of Ancelotti's departure will vary depending on whether the coach is fired – after seeing the team eliminated in the Champions League quarterfinals and beaten in the Copa del Rey final, or leave Brazil to work.

Ancelotti could significantly reduce the settlement in Madrid until the June 2026 contract, and his settlement would be greatly reduced if he leaves Brazil, and the club expects CBF to receive compensation from CBF in exchange for the release of the coach from the contract.

Sources say Madrid usually pays managers six months of severance when they are fired, regardless of the length of their remaining contracts.

Another source told ESPN that a possible compromise would allow Madrid to pay Ancelotti the proportion of its remaining salary, while Brazil made up for the shortfall.

Sources say that while Ancelotti is the CBF’s preferred choice as a coach – he’s already aware of the fact – it’s also considering alternatives like Jorge Jesus of Al Hilal and Abel Ferreira of Palmeiras.

ESPN's Mark Ogden's information contributes to this report