The conditions for the coach to stay at the club would be a relevant title (Champions League, La Liga or Copa do Rey).
In my opinion it's even unfair since the coach won the Club World Cup, won the Champions last year, is in second place in La Liga, semi-final of the Copa do Rey, and is still very good in the Champions, it's absurd to call this bad results.
Once again I will try to predict the future, and Ancelotti should really leave the club at the end of the season to take charge of the Brazilian national team.
The whole situation is heading for this to happen, since the Brazilian national team is with a temporary coach, just waiting for Ancelotti.
Real Madrid may try again Zidane.
I agree that Ancelotti should leave the authority of Real Madrid. He has achieved a lot at Real Madrid. I personally do not think he has anything to prove to anyone as coach of Real Madrid. In spite of the fact that we all know what he is doing, the results he is bringing are not bad. People should understand that the same success might not be found every season. Especially when the star player Benzema who was performing like the finest player in the world last season is not performing as expected.
But anyway, people are not apt to think about those things much. Actually, it would be better if Real Madrid tried Zidane.
Ancelotti should think about managing the Brazil national team.