Real Madrid are interested in hiring Xabi Alonso as a replacement for Ancelotti when the latter decides to leave, and the club has made all the necessary arrangements for this.

Both Alonso and Ancelotti are under contract until 2026, which initially seemed like the ideal scenario for the club.
However, Manchester City have recently entered the picture. With Pep Guardiola likely to leave at the end of the season, City have been on alert and have identified Xabi Alonso as the ideal choice to take over.

As for Alonso’s future, he has started to look beyond Bayer Leverkusen, with reports, including from Sky’s Florian Plettenberg, suggesting that the German club has begun preparing for his departure. However, his final destination remains unclear.
Manchester City will offer him a huge salary that no other team can match, but the Santiago Bernabéu could offer him something more.

Alonso knows Real Madrid well and understands that this is where he could achieve glory. The impact of winning at the Bernabéu cannot be matched by any other team, but the final decision will be his.