Carlo Ancelotti is in talks with Real Madrid about a contract extension.

That's according to Okdiario's chief pundit Eduardo Inda, when speaking on El Chiringuito.

Ancelotti is said to have agreed a deal with the Brazilian Football Confederation, but Inda says: "It is a smokescreen because the Brazilian coach (Fernando Diniz) there is doing well.

"I don't know if it's true. Many times when there is bad news you have to throw positive or lies. There is a good chance that Ancelotti will continue. In recent weeks he and Real Madrid have been talking.

"The idea of the club is to offer him a season more and renew season by season. He is a person who has given stability to the team. The board did not trust him when he returned, but he won the European Cup and the team is very calm and they are not making a fool of themselves.

"There have been negotiations to renew him for a season and it could be 1 + 1. Brazil needs a coach for the Copa América, which starts in June and he still has a current contract with Real Madrid."