BREAKING NEWS: After their crushing Champions League exit, Real Madrid strikes a bold three-year deal with Xabi Alonso to reshape the future.

Real Madrid reportedly reached an agreement with Xabi Alonso to take over as head coach after their Champions League exit to Arsenal, according to MARCA. The decision was made internally following the elimination, but kept quiet while the season was still ongoing.

Real Madrid and Xabi Alonso's Agreement for the White Bench Comes to Light

Carlo Ancelotti and the board agreed it was time to prepare for a new chapter. They chose to keep the news private while focusing on winning La Liga. A farewell was planned behind the scenes out of respect for the Italian manager.

Ancelotti and Real Madrid reach verbal exit agreement as Brazil job looms

Ancelotti is now expected to join the Brazil national team in June. The deal will run until the 2026 World Cup. Reports suggest both parties already shook hands on the agreement earlier this year.

Xabi Alonso includes Arsenal star on list of three names he wants Real  Madrid to sign

Xabi Alonso will sign a three-year deal with Real Madrid. He played for the club between 2009 and 2014. MARCA reported: “The decision was made, he knows the club well and understands the values they want to keep.”