What's next for Carlo Ancelotti after Champions League defeat?

Brazil has been after Ancelotti for years. Sources at the CBF, Brazil's national soccer federation, admitted that Ancelotti was "the president's dream" as far back as 2024. When the Ancelotti-Brazil rumors began, the alliance felt opportunistic and intriguing; today, though, after a poor run of form in South America's World Cup qualifiers, Brazil needs Ancelotti more than it wants him. Six South American teams will qualify automatically for the expanded 2026 World Cup; Brazil is currently in fourth, just one point outside of that final advancement slot. With four matches remaining in its qualification journey, a few more bad performances could see Brazil miss out on the World Cup altogether.

The CBF, to its credit, recognizes this; it fired coach Dorival Junior back in March with the goal of hiring a big-name replacement before Brazil's next qualifying match in early June. Ancelotti remains the organization's top target. If he leaves Madrid at the end of the season, he'll have plenty of time to take Brazil's reins before that crucial qualifier—and he'll be able to help the team rescue itself in time for the World Cup.

In many ways, Ancelotti is a natural fit for Brazil. He's worked closely with several of the team's biggest names—Vini Jr., Rodrygo, Endrick and Eder Militão—at Madrid. He's flexible and player-driven, the kind of leader who lets his talented stars run riot. 

“I believe strongly in the players' creativity when they have the ball and I don't like to make them obsess over predefined shapes," Ancelotti told Real Madrid's communications team before last year's Champions League final. "I leave it down to their initiative."

That's an appealing mindset for Brazil, a team that always trades on individual talent. But it's a risky one, too. It relies on moments of magic, and those moments have been rare for the seleçao since earning its last trophy (the Copa America) in 2019.

But still, the marriage between Ancelotti and Brazil feels right: the world's preeminent player-driven coach meeting the world's preeminent player-driven team. Both are on the outs after disappointing runs of form in 2025, but both could spark each other back to life.

Ancelotti's Madrid will return to action on Sunday against Athletic Club in Spain's La Liga. Brazil will return on June 4 with a must-win World Cup qualifier against second-placed Ecuador.