A statement from the Brazilian Football Confederation (CBF) said Ancelotti was a “legend of the game” and acknowledged the significance of a foreign coach taking charge of the team.

“This landmark moment sees the coming together of two icons — the only five-time Fifa World Cup champions, and a coach with an unmatched record across Europe’s elite competitions,” the CBF said.

“The CBF warmly welcomes Mr Ancelotti and looks forward to a new era of success under his leadership.”

In their statement, the CBF thanked Real president Florentino Perez for “facilitating the coach’s release during his contract term” and also acknowledged Brazilian businessman Diego Fernandes for his role in the deal.

Ancelotti’s current deal with Real was set to expire in June 2026.

The Italian takes over the Brazil job from Dorival Junior, who was sacked in March after they lost 4-1 to arch-rivals Argentina in World Cup qualifying.

Brazil sit fourth in the South American group, having lost five of 14 games, although are still well placed to qualify for the 2026 finals.

Ancelotti’s first games in charge of Brazil will be the Selecao’s World Cup qualifiers against Paraguay and Ecuador next month.

Brazil have not won the World Cup since 2002 and the last time they were Copa America champions was in 2019.

During a 30-year managerial career Ancelotti has been in charge of some of the giants of European football, including Juventus, AC Milan, Paris St-Germain and Bayern Munich.

He has won league titles in Italy, Spain, France, Germany and England.

Former Real, Liverpool and Spain midfielder Xabi Alonso, 43, is set to replace Ancelotti in the Bernabeu hot seat.

Alonso announced last Friday he was leaving German side Bayer Leverkusen at the end of the season and Real are said to want him in place before the start of next month’s Club World Cup.