Carlo Ancelotti will reportedly sign a new long-term contract with Brazil in the coming weeks, with Manchester United losing out on another potential managerial option.
Michael Carrick will be Man United's head coach for the remainder of the season, at which point the club will decide whether to hand the ex-midfielder the job on a long-term basis or bring in a permanent replacement for Ruben Amorim.
Thomas Tuchel was thought to be a candidate, but the German has now signed a new contract with England to remain in charge until at least 2028.
Ancelotti was also believed to be on Man United's radar, with the Italian a proven winner, and his contract with Brazil was due to expire after the 2026 World Cup.
However, according to ESPN, a verbal agreement over a new four-year deal was reached at the end of 2025, and it will become official in the coming weeks.
Ancelotti 'to sign' new Brazil deal in the coming weeks
The report claims that Ancelotti's salary will be unchanged, as he receives £8.7m per year, making him the highest-paid head coach in Brazil's history.
However, the wages of Ancelotti's staff will allegedly be 'adjusted'.
The 66-year-old took charge of Brazil after leaving Real Madrid at the end last season, and it was always thought that Los Blancos would be his last job in club management.
Ancelotti is now planning to stay with Brazil through the 2030 World Cup, and Man United have lost another potential option.
Where do Man United go from here?
Carrick has guided Man United to four wins and one draw from their five Premier League matches since his arrival as head coach.
The Englishman, as it stands, is seen as the favourite to be handed the job on a permanent basis, but Oliver Glasner, who is leaving Crystal Palace this summer, and former England head coach Gareth Southgare are also potential options.
Luis Enrique is expected to sign a new deal at Paris Saint-Germain, while Tottenham Hotspur could move for Roberto De Zerbi following his exit from Marseille.
As a result, Man United's options are becoming limited, and if Carrick can continue to impress at the helm, then he should be given the chance to lead the team on a permanent basis.
Man United's full focus this term is on securing Champions League football for next season, and their recent run has seen them move into fourth spot in the Premier League table.