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Real Madrid have announced that head coach Carlo Ancelotti is staying on at Santiago Bernabeu until at least 2026 after signing a contract extension. The Italian's decision to remain in the Spanish capital is not only a boost for the giants of La Liga but also a major blow for the likes of the Brazil national team and Blancos legend Zinedine Zidane. Ancelotti staying on also has an impact on current Selecao boss Fernando Diniz and the Brazilian FA (CBF) which is now under greater pressure than ever.

We break down what the move could mean for various parties.

Carlo Ancelotti

After months of uncertainty and speculation, this news puts the legendary Italian boss' mind at ease and will enable him to concentrate on the substantial task of not only leading Real through the current minefield of a season they are in but also continuing their rebuild of the squad. Ancelotti will be majorly challenged by the remainder of the current campaign without Thibaut Courtois, Eder Militao and David Alaba and constant rumors about his or the club's next move would not have helped. Now that his future is secure for the next two years, the 64-year-old can continue his work restructuring this Merengues team with Jude Bellingham emerging as the new star of Santiago Bernabeu backed up by the likes of Vincius Junior, Aurelien Tchouameni and Eduardo Camavinga.

Brazil national team

Although this is great news for Vini Jr. in club terms, it is a hammer blow at international level given that the Selecao are currently in dreadful shape. Under the interim leadership of Diniz, the South Americans are slumping in FIFA 2026 World Cup qualification, are unsure whether talisman Neymar will ever truly be fit enough again to lead the team and now are dealing with a scandal too. World soccer's governing body is threatening the CBF with suspension if the controversy surrounding Ednaldo Rodrigues' removal from office is not cleared up soon. A new presidential election has been ordered within 30 days while FIFA is pushing for the court order to be removed and for the CBF to handle things in-house. At least for now, a full-time head coach will be the least of the CBF's concerns so do not be surprised if we have not seen the last of Diniz as acting Brazil boss despite the underwhelming results post-Tite.

Zinedine Zidane

As is often the case when Real change head coach, the legendary former France international is considered as a frontrunner for the job given his previous successes and that was thought to be the case again here. However, Zidane himself has been positioning himself for the French job should Didier Deschamps be relieved of his duties which was not the case after a run to the 2022 World Cup final. The former Real man now has no option but to hope that Les Bleus struggle at this coming summer's Euros which could free up the role for him to move in. Otherwise, could Brazil return to Zidane with a new proposition once the CBF gets its house in order? It is a possibility.

Kylian Mbappe

January is no longer January without exhaustive speculation regarding the Paris Saint-Germain man's future and that chatter is already stepping up several notches and the winter transfer window is not even open yet. With Ancelotti sure to be continuing and Real now certain of their managerial future, it gives them the stability needed to analyze the possibility of Mbappe's arrival in depth and make moves accordingly from the start of January as part of the continued rebuild under the Italian. As for the French superstar, he now knows that he might be coached by Zidane at international level sooner than at club level which might or might not impact his decision regarding his future beyond this summer and the Euros as well as the Olympic Games on home soil.

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Raul and Xabi Alonso

Two final names potentially impacted, at least in the short term and assuming that Brazil do not find the funds to push ahead with a bid to land Ancelotti, are those of the two former Spain internationals. Raul turned down the chance to coach in Germany with Union Berlin after working his way up the ranks with Real's youth level teams but could be tempted by a more attractive offer in the near future while Alonso is winning huge plaudits for his work with Bayer Leverkusen which quickly saw him earmarked as a potential replacement for Ancelotti. With that possibility out of the way, at least for now, another top European club could steal a march on the Spaniards for one of the brightest young tacticians in world soccer right now.