Real Madrid are unhappy with the timing and financial arrangements of Carlo Ancelotti's exit from the club, leaving his reported move to take over as coach of the Brazil national team in jeopardy, claimed multiple media outlets in Madrid and Brazil.
On Monday, the Brazilian federation (CBF) was confident that a deal to hire Ancelotti as their new head coach was progressing in time for him to oversee a pair of World Cup qualifiers in June.
However, Madrid are unwilling to pay the remainder of Ancelotti's contract, which expires in 2026, leaving the move at an impasse.
Madrid think they can accept his departure at the end of the La Liga season, but are not prepared to pay the remainder of his deal.
CBF representatives are trying to negotiate a resolution while avoiding putting undue pressure on Ancelotti to honour a verbal agreement that was made, according to reports.
CBF president Ednaldo Rodrigues has set a May deadline to name a new Brazil coach, and as they wait for Madrid and Ancelotti to resolve contractual differences, the CBF is again reevaluating the possibility of asking Al Hilal Jorge Jesus to coach the national team in time for June Conmebol Qualifiers.