Everton manager, Carlo Ancelotti is set to become the next head coach of Spanish giant, Real Madrid, following the departure of Zinedine Zidane last week.
The Frenchman left Los Blancos after ending the season trophyless, the first time Madrid failed to win silverware in 11 seasons.
However, Sky Sports reported that talks between Madrid and Ancelotti – who previously coached Real between 2013 and 2015, is "99 per cent" done.
According to Italian journalist, "Carlo Ancelotti to Real Madrid, The agreement on the termination of Ancelloti's contract with Everton is set to be completed."
Reports added that the two clubs are in direct contact and the Italian will rejoin Real Madrid with the announcement expected to be official soon.
Ancelloti won the La Decima in the 2014 Champions League during his first stint at the Bernabeu, as well as Copa del Rey, UEFA Super Cup and Club World Cup glory that year.
Since his sack six years ago in 2015, Ancelotti has gone on to coach Bayern Munich, Napoli and Everton who he recently led to a 10th-placed finish in the Premier League.
Meanwhile, the 61-year-old had several weeks ago denied reports of a Madrid return after he was linked to replace Zidane.
"This is good publicity for me to be linked with Real Madrid but it is not true," he said. "I am really happy to stay here.
"We have difficulties of course, but I feel good at Everton and my target is to make Everton better and better every year," he said.