The former Real Madrid and AC Milan coach's current contract runs to next summer's World Cup.
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But such has been his impact with the players and the Brazilian fans, that the CBF want to secure the Italian to a longer deal.
Indeed, such has been the confidence generated, that the CBF intend to offer Ancelotti a contract to 2030 - so including the next World Cup qualifying cycle.
On his position, Ancelotti said last week: "I'm very happy here and have no other ideas than Brazil. I'm in no rush; I want to continue if we reach an agreement."