The former Real Madrid, AC Milan and Chelsea coach is contracted to the CBF until the end of this year's World Cup.
However, such has been the Italian's impact that the CBF wish to not only keep him in charge for the next Copa Libertadores, but also the 2030 World Cup.
Xaud told a media gathering on Sunday: "The dialogue (for the renewal) is already underway and both parties are interested. We are making some bureaucratic changes to continue his work together.
"The renewal before the World Cup is very important for Brazilian football as a whole. I've always said I believe in medium- to long-term work.
"In structured work. In a short time, he (Ancelotti) has already demonstrated his quality, his competence, as a coach and as a person. He's perfect for the Brazilian national team and for the CBF.
"We want this work to continue and for him to have more time to dedicate to Brazilian football."