The former Parma, Juventus, Milan, Chelsea, PSG, Bayern Munich, Napoli and Everton boss was tipped to take charge of the Selecao for World Cup qualifiers against Ecuador and Paraguay on June 3 and 8.

He has been closely linked to the Brazil job since Real exited the Champions League to Arsenal at the quarter-final stage.

However, it seems the deal might be off, with football journalist Fabrizio Romano suggesting that Real Madrid are “currently blocking” the move.

“Real do NOT want to pay any exit fee for Ancelotti’s salary,” Romano added.

The journalist also claimed that Brazil are not planning to wait around.

Reggiolo-born Ancelotti, 65, a former Roma and Milan midfielder, has won the UEFA Champions League five times, a record for a manager, and is the only manager to take part in six Champions League finals.

Ancelotti is also the only manager to win league titles in all of Europe’s top five leagues.

ANSA