Ancelotti signed a new two-year deal on Friday, ending speculation linking him with the Brazil national team, and increasing the likelihood that the 64-year-old will be at the Bernabeu for the rest of his career.

The Italian leads his side into Wednesday’s home game against Mallorca sitting back at the top of the table on goal difference from surprise package Girona after two straight wins.

Ancelotti told a press conference: “I’m very happy to have my contract renewed, it was very simple and both sides agreed on it.

“It’s important that the club continues to trust in my work. My contract was up on June 30 and the club decided to do it now because they’re happy with my work.

“I don’t know if it will be my last spell as a coach. I don’t know what will happen once I finish here. I might still be here in 2026, depending on how successful I am.

“I’d like to be Madrid coach until 2026, and hopefully I can continue to be here in 2027 and 2028 because I want to stay here.”

With his side’s injury problems starting to ease, Ancelotti insisted he will not be in the market for new players in the January transfer window, despite first-choice centre-backs Eder Militao and David Alaba still sidelined.

“We are not planning to sign another centre-back,” said Ancelotti, who will have Vinicius Junior, Dani Carvajal and Arda Guler all available after returning from injury.

“We’ve got two important ones out, but we’ve got two more in Nacho and (Antonio) Rudiger. And then we have others options in case of emergencies such as (Eduardo) Camavinga and Carvajal.”

Having hauled in the early domestic leaders, Ancelotti is confident his side will continue to assert their authority in LaLiga with so many big names becoming available.

“We must wait and see what happens this season. We’ve done well so far, the team has changed, it’s changing, and it will change in the future,” he added.

“We have a lot of talent that we haven’t been able to put into action yet, like Guler, who is finally getting back to his best.

“We’ll have to wait for the second half of the season. We did well in the first half, even with a lot of problems.”