Since the dismissal of Tite following their quarter-final exit at the 2022 World Cup, O Seleção have been searching for a new coach.
The South Americans have a five-man shortlist, including Jose Mourinho and Jorge Jesus, but Ancelotti is at the top of that list.
Brazil are now leaning towards delaying their recruitment process for the next month, with Ancelotti currently focused on his job at the Santiago Bernabeu.
Ancelotti has also stated his desire to see out his contract in the Spanish capital, which expires in 2024.
“I’m sure I will be here as Real Madrid coach next season, we’ll respect the contract,” the 63-year-old said when quizzed about his future.
“I think that Florentino Pérez wants me to stay and continue here. He has always been kind with me – I’m proud of what I did and I’m doing here.”
Brazil are expected to be undeterred in their pursuit of Ancelotti as they look to fill their managerial vacancy before the next international break in June.
Ancelotti will be targeting silverware on the domestic and continental fronts, with Madrid heading into the business end of the season.
While their La Liga campaign has not gone to plan, Los Blancos are through to the final of Copa del Rey, where they will take on Osasuna next month.
They also have the chance to retain their Champions League crown but must see off the threat of Manchester City in what is set to be a mouth-watering semi-final tie over two legs.
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