Italian coach Carlo Ancelotti will not be taking charge of Brazil after all, according to multiple reports.

The Real Madrid manager had reportedly agreed to take over the Selecao in June and even travelled to London on Tuesday for what was expected to be the final meeting to sign the contract with the Brazilian Football Federation (CBF). But talks broke down over the terms of his early exit from Madrid.

While Ancelotti had agreed to start before the Club World Cup, Real Madrid -- with whom he is contracted until 2026 -- refused to release him unless he forfeited the €11m (£9.4m) still owed to him. Unwilling to walk away from that amount, Ancelotti backed out of the deal.

Madrid are reportedly open to letting him go before the Club World Cup, but they will not pay to facilitate his departure to another team.

Brazil are now expected to pursue Al Hilal boss Jorge Jesus.