Carlo Ancelotti has taken a massive pay-cut to return to Real Madrid.

Ancelotti quit Everton last week to return to Real Madrid, signing a three-year contract in the process.

Okdiario's chief pundit Eduardo Inda, speaking on El Chiringuito, revealed the Italian has taken a huge cut on his Blues wages to make the move.

"Ancelotti's salary is going to drop 40 per cent gross compared to what he had at Everton," Inda stated.

"He is going to earn less than in his first stage, he has a brutal bonus, but a net salary that ranges between 3.5 and 4 million euros."

Inda also revealed how the move happened.

"Ancelotti called (vice-president) José Ángel Sánchez and asks him what players he can have for Everton.

"He tells him that they are looking for a coach and Ancelotti said: 'You have the best in the world within ear shot'.

"For the assistant he is going to have his son, Davide , and he does not want anyone else."