Ancelotti led Madrid to a Champions League and LaLiga double last season, becoming the first coach to win Europe's premier club competition on four occasions.

The Italian is one of several high-profile coaches to be linked with the Brazil job, with Tite departing in the aftermath of the Selecao's World Cup quarter-final elimination at the hands of Croatia.

However, the Madrid boss plans to remain at the Santiago Bernabeu until his contract expires at the end of next season – unless his employers decide otherwise.

"I don't know what the future holds for me, I live day by day," Ancelotti said.

"At the moment, I'm great in Madrid, we have many goals this season. There will be time to think about my future. 

"I have a contract until June 30, 2024 and, if Madrid don't kick me out, I won't move until that day." 

Madrid entered the World Cup break two points behind bitter rival Barcelona at the top of LaLiga and will resume its campaign with a trip to Real Valladolid on 31 December (AEDT).