The two parties split last week after Ancelotti had been only months in charge at Botafogo.
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Botafogo was the former Real Madrid assistant coach's first leading role and it's now emerged the Italian chose to leave the post over a disagreement regarding staffing appointments.
Globoesport reports the rift is primarily tied to fitness trainer Luca Guerra: Ancelotti had made it known that "he would only stay with the confirmation of the entire coaching staff", a condition Botafogo refused.
Meanwhile, Botafogo are seeking talks with Argentine coach Martin Anselmi as Ancelotti's replacement. Anselmi is available after leaving Porto at the end of last season.