Real Madrid are unhappy with the timing and financial arrangements of Carlo Ancelotti's exit from the club, leaving his reported move to take over as coach of the Brazil national team in jeopardy, sources told ESPN Brasil.

Carlo Ancelotti will not become the new Brazil coach after all, according to various media reports. The 65-year-old Italian declined the offer, Spanish newspaper Marca said on Wednesday, adding that he had travelled to London specifically to sign the contract before the deal fell apart.