Last month, the 65-year-old cemented his place as Real Madrid’s greatest manager of all time after securing his 15th trophy with the club, following their triumph in the Intercontinental Cup in Qatar.
Although Ancelotti is very happy at the club, he is ready to take on a new challenge.
He is unlikely to retire and could potentially manage a national team.
Former Spain midfielder Xabi Alonso, who led Bayer Leverkusen to a historic Bundesliga title last season, has been strongly linked with a move to the Spanish capital.
If Ancelotti does quit the job, Alonso is the favourite candidate to replace him at the helm.
