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Carlo Ancelotti has reportedly signed a pre-contract agreement with Manchester City.

Ancelotti's future is in doubt at Real Madrid, following a disappointing season by their standards.

They were knocked out of the Champions League on Wednesday evening, when former striker Alvaro Morata came back to haunt them and fire Juventus to the final against Barcelona.

Ancelotti admitted after the game he didn't know if he would be at the club next season, and Mediaset suggest he is heading for the Etihad.

Real also look likely to finish second in La Liga behind their Clasico rivals, sitting four points adrift of top spot heading into this weekend's fixtures.

(Image: Reuters)

Barca can seal the title if they beat Atletico Madrid at the Vicente Calderon on Sunday.

Los Blancos are also not in the running for the Copa del Rey, with Barcelona and Athletic Bilbao to contest the final.

A season without major honours is unlikely to be accepted by the Bernabeu hierarchy, and City seems like a logical destination.

Much like Real, City's owners will take a dim view of a trophyless season at the Etihad, following last season's Premier League and League Cup triumphs.

Manuel Pellegrini could be axed by Sheikh Mansour, leaving a vacancy in Manchester.

It is suggested one of Ancelotti's first roles, should he take the reins at City, would be to try and convince Yaya Toure to stay with the club.