Xabi Alonso is emerging as the main candidate to succeed Carlo Ancelotti on the bench of Real Madrid. The Bayer Leverkusen coach has a special clause in his contract that allows him to leave the German club at no cost if he receives an offer from one of his former teams as a player: Real Sociedad, Liverpool, Bayern Munich, or Real Madrid.
According to Bayer Leverkusen's CEO, Fernando Carro, there is a "gentleman's agreement" with Xabi Alonso that would allow him to leave the club if one of his former teams shows interest in hiring him. This agreement doesn't imply a formal release clause, but it guarantees that the club will not obstruct his departure in these circumstances.

Xabi Alonso has already rejected offers from Liverpool and Bayern Munich, making it clear that his priority is to manage Real Madrid. Although his release clause is 20 million euros, for the white team the cost would be zero thanks to this special agreement, as revealed by Ramón Álvarez de Mon.
The coach from Tolosa has proven his worth at Bayer Leverkusen, leading the Germans to conquer the Bundesliga undefeated and reaching the Europa League final. His knowledge of Real Madrid and his play style make him the ideal candidate to lead a new era at Santiago Bernabéu.
Xabi Alonso: Other 'Agreements' Between Real Madrid and Leverkusen
There is a great relationship between Real Madrid and Leverkusen. There will be no problem for Xabi Alonso's arrival, and both clubs are willing to negotiate other types of agreements. Madrid-Barcelona has learned that on the table is the possibility of agreeing on operations for footballers that would serve as 'compensation' for the Basque.
One name on the table is Arda Güler, who could head to Leverkusen on loan. In any case, the final word would always be with Xabi Alonso himself, who seems to count on the Turk at Real Madrid.

Not only is Güler of interest to Leverkusen. The list of players from Real Madrid who could pack their bags for Germany is long. Florentino is willing to negotiate so that both clubs end on a good note and maintain good relations.