Real’s La Liga defence was dealt a decisive blow on Saturday as they lost 4-3 to league leaders Barcelona to leave them seven points adrift with three games remaining.
Conversations with Real started months ago when they let Alonso know he would be the replacement if Ancelotti did not continue next season.
By March a verbal agreement was in place and in the last two weeks negotiations started to focus on the details.
Right now, nothing has been finalised about the timing of his arrival, but Real have let him know that he should take over in the USA as they consider the Club World Cup a very important competition.
The Spanish side are also hoping to complete the signing of Liverpool full-back Trent Alexander-Arnold before the start of the Club World Cup.
Leverkusen had a gentlemen’s agreement with Alonso by which he could leave if one of this former clubs came calling, a door open to Liverpool, Bayern Munich and Real. His original idea has always been to manage Liverpool at some point in his career.
Last year the former Liverpool star led Leverkusen to the double of a Bundesliga title – without losing a game – and the German Cup in his first full season as a senior club manager.
Alonso played for Real between 2009 and 2014 following a five-year spell at Liverpool, before ending his playing career after three years at Bayern Munich in 2017.
BBC Sport reported last month that Ancelotti is set for further talks about taking over as Brazil coach before the 2026 World Cup qualifiers in June.
Ancelotti took charge of Real for a second spell in 2021 and has won the Champions League three times with the club.
But the Italian’s side failed to reach the Champions League semi-finals for only the third time in 12 seasons this campaign.
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