The Everton boss is being lined up for a second stint in the Spanish capital, with initial contact having been made five days ago.
Carlo Ancelotti is in advanced talks with Real Madrid regarding a return to Santiago Bernabeu, Goal can confirm.
The Blancos are in the market for new head coach after seeing Zinedine Zidane walk away from the final year of his contract.
Various candidates have been linked with one of the most demanding roles in world football, but a man who knows all about those pressures is heading back for a second spell.
How close is a deal?
It is understood that discussions with Ancelotti were first opened five days ago.
Since then, positive progress has been made and an agreement to take the Italian back to the Spanish capital is now close to being completed.
Real are currently working on the compensation package that will be due to Everton, as they prepare to part with a manager that was tied to a deal through to 2024.
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Source: Goal
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