Paulinho, of Brazil, is coveted by Tottenham but Ancelotti has quickly authorised a £20 million bid by Real

Carlo Ancelotti’s first act as Real Madrid coach could be to thwart Tottenham Hotspur’s longstanding pursuit of Paulinho and the Italian’s belated appointment at the Bernabéu could have significant implications for the transfer plans of several other Barclays Premier League clubs.

The former Chelsea manager signed a three-year contract with Real yesterday and immediately sanctioned the club’s £20 million bid for Paulinho, the Brazil holding midfielder, who is coveted by Tottenham.

Paulinho has spoken enthusiastically about the possibility of joining Tottenham, who offered £17 million to Corinthians for the box-to-box midfielder this week, but Real’s late interest may cause him to reconsider.

Florentino Pérez, the Real president, has pledged to provide Ancelotti with significant transfer funds to rebuild the squad as Real continue what has