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But the Brazilian FA are claimed to have plans in place for his successor.
Ancelotti, 63, was informally approached back in October, according to UOL Esporte.
The Real Madrid boss is reported by UOL to be a candidate for the job, although the Brazilian FA (CBF) have denied suggestions the search is underway already for Tite’s successor.
Ancelotti is reportedly open to taking over as Brazil gaffer, but only at the end of the current season.
That would require the five-time World Cup champions to appoint an interim manager between now and June.
He also indicated that he would only open concrete talks when the position was vacant, which it now is.
UOL say managers Ancelotti and Tite are good friends.
The Italian gaffer is under contract at Real Madrid until the end of next season, meaning Brazil would have to negotiate with the Spanish side on his departure.
Ancelotti currently works with Brazil trio Vinicius Jr, Eder Militao and Rodrygo at the Bernabeu.
The Brazil FA are keen to appoint a manager who will lead them into the 2026 World Cup.
Other options include Fluminese boss Fernando Diniz, who has the backing of a number of players including Dani Alves, Thiago Silva, Bruno Guimaraes, Antony and Neymar.