Carlo Ancelotti will sign a contract extension with Brazil's Football Confederation to continue as head coach through the 2030 World Cup in the coming weeks.
ESPN revealed in December that the Italian manager had reached a verbal agreement to sign a new four-year contract.
The new deal will not include a salary increase for Ancelotti, who is already the highest-paid coach in the history of the national team earning €10 million ($12m) per year.
However, Ancelotti's four coaching staff members will have their salaries adjusted.
The announcement is expected to be made official before Ancelotti names his squad on March 16 for the upcoming international friendlies against France and Croatia in the United States.
Ancelotti, 66, expressed to ESPN in September his desire to extend his contract until 2030. He took charge of Brazil's national team after leaving Real Madrid in May 2025.
He has set his sights on guiding Brazil to their sixth World Cup trophy in 2026. Brazil have not lifted the World Cup since 2002 and the closest they have come since was a fourth-place finish in 2014 when they hosted the event.
Under Ancelotti, Brazil have won four, drawn two and lost two of their eight games. Ancelotti, meanwhile, is still working on finalising his World Cup squad.
