Carlo Ancelotti and Real Madrid reportedly agreed the conditions of his exit.
The future of the Italian has been a consistent theme in the season of Madrid, where Xabi Alonso has long been advertised as his successor.
He was in connection with the empty job in Brazil, but has since rejected the offer to the World Cup 2026 in Leiden.
Madrid will still have to pay Ancelotti for next year, because his contract will only expire in 2026 and that has been incorporated into the delay on negotiations.
However, the athletics now reports that the two parties have reached an agreement.
His output will be confirmed before the end of the season and can even be announced just after El Clasico of Sunday, of which Madrid has to win to have a realistic hope to maintain the Liga title.
Alonso is generally seen as his natural successor after three brilliant seasons with Bayer Leverkusen.
The former Los Blancos star led Leverkusen to the Bundesliga and DFB-Pokal titles last season and the only competition she was lost to the Europa League final to Atalanta.
Ancelotti's next step is unclear after he has reportedly rejected Brazil.
Marca reported that he contacted the president of the Brazilian Federation, Ednaldo Rodrigues, to inform him about his decision.
The report from Marca claims that Ancelotti's U-turn came after the uncertainty emerged when he could possibly start his role in Brazil.
Brazil believed that he could really leave in June, but Ancelotti is supposed to have told the federation that he would only take his position in August.
Apart from a big change in heart, Ancelotti is not now becoming the next manager of Brazil and can still really lead in this summer Club's World Cup.
Ancelotti is still ready to leave the Spanish giants prior to the following season, and is supposed to consider a huge offer to manage in Saudi Arabia.
The Saudi contract is said to earn Ancelotti a net of € 50 million (£ 42 million), which can be difficult for him to reject.
Ancelotti, 65, has confronted with pressure this season, even though it is one of the most decorated managers ever, and brings enormous success to the Satniago Bernabeu.
In two stints that manage the Spanish giants, he has won 15 trophies, including Three Champions League and two Laliga titles.
Barcelona follows in the competition, but in the final of Copa del Rey and Supercopa loses the Espana, and crashes from the quarterfinals of the Champions League to Arsenal, the ax seems to have brought down.