I assume that if Real Madrid can't find an alternative, maybe there will be compromise for one more season with Ancelotti. But he knows if he wants to prepare the Brazilian team for 2026, he can't wait any longer than until summer 2025. I am sure that coaching a national team at a World Cup is one of his big plans and getting the chance to take responsibility for the Brazilian team sounds like a great opportunity. But if he doesn't give it enough, time it might go wrong big time.
In the end, it is up to Carlo Ancelotti to decide whether he wants to go after the big bucks being offered by Real Madrid, or the fame that comes with the coaching role with Brazil. The latter option is more risky, I would say. Brazil is a time that is disintegrating and I am not very hopeful about their chances in the 2026 FIFA World Cup. I would even go to the extent of saying that I am not even sure about Brazil qualifying for the 2026 event. At this point, they are no.6 in the CONMEBOL qualifiers after losing matches to Uruguay, Colombia and Argentina.