The Future of Ancelotti on the Real Madrid Bench Seems Increasingly Clear, Pointing to an Exit Before His Contract Ends. It is valid until 2026, but the current idea is to make a complete change of the coaching staff. In this regard, there seems to be a clear candidate to succeed him, to the point that Paco González has been blunt, indicating that "it's signed".
Paco González Makes It Official: Xabi Alonso to Real Madrid
After the match between Arsenal and Real Madrid in the Champions League, where a very tough defeat occurred, Paco González was clear. Speaking on COPE about the Real Madrid bench, he said: "Before this match, at noon, someone who knows someone said there's no turning back, that Xabi Alonso is signed. I have no idea, okay? But there are people who consider it super signed".
Ancelotti's position is increasingly in doubt at Real Madrid, both from the fans and the upper management at Santiago Bernabéu. The idea is clear: make a change on the bench to reverse the current situation. This wouldn't happen until next season, with the current one in its final stretch. Despite the complications, the white club is still competing for La Liga, Champions League, and Copa, in addition to having the Club World Cup around the corner.

Xabi Alonso Is Ancelotti's Heir
Xabi Alonso is shining at Bayer Leverkusen, where he has managed to make the team play attractive and competitive soccer. His knowledge of the club and his style perfectly match what Real Madrid is looking for.
Florentino Pérez and his board see Xabi Alonso as the ideal candidate. His work in Germany has convinced everyone. Additionally, his past as a Madrid player and his character make the transition natural, but there's a problem: his signing won't be free.
Xabi Alonso has a contract with Bayer Leverkusen until 2026. That means Real Madrid would have to pay financial compensation to take him from the German club. The estimated price is around 6 million euros. It's not a prohibitive figure for Madrid, but it is a reminder that this signing wouldn't be as simple as some imagined. Leverkusen doesn't want to lose their star coach and will do everything possible to retain him.
In any case, Florentino seems to have it clear, at least according to what Paco González has said. The chosen one is Xabi Alonso, with Ancelotti leaving Real Madrid. It would already be "signed".