The 61-year-old made all the right noises about building on his first 18 months on Merseyside at the end of last season.


But interest from Real Madrid has turned his head and Italian has quickly emerged as the man the Spanish giants want as their new coach this summer.



Ancelotti is reportedly on the verge of working out an agreement to return to Real Madrid in the coming hours.


It has been claimed that his agents are now in talks with Everton over terminating his contract at Goodison Park.



Everton were planning to back the Italian with significant funds in the transfer market this summer, but have now been left shocked by his decision to leave.


His agents are working out a compensation package that Everton would be due as he is still contracted until 2024 at Goodison Park.



Once the agreement is in place between Ancelotti’s agents and Everton, his move to Real Madrid can go through.


Real Madrid are not anticipating any problems over agreeing on personal terms with the man who won them their tenth European Cup in 2014.