Ancelotti, who joined Everton on a four-and-a-half-year contract in December 2019, said: “I would like to thank the Board of Directors, the players, and the Evertonians for the tremendous support they have all given me during my time at the Club.
“I have complete respect for everyone associated with Everton and hope they can achieve the exciting opportunities they have in front of them.
“While I have enjoyed being at Everton I have been presented with an unexpected opportunity which I believe is the right move for me and my family at this time.”
Ancelotti also released a statement on his Twitter account, revealing that he decided to depart Goodison Park for a new challenge at a club that is “always in my heart”.
Real Madrid announced the move in their own statement and confirmed their former boss has been re-appointed on a deal until the end of the 2023/24 season.
It read: “Real Madrid C. F. announces that Carlo Ancelotti will be the club’s first-team coach for the next three seasons.
“The ceremonial signing of the contract will take place tomorrow with club president Florentino Pérez at Real Madrid City, after which Ancelotti will address the media from 6pm (CET) in an online press conference.”
Ancelotti has returned to the Bernabeu following Zinedine Zidane’s departure. The 48-year-old left after the club failed to win a trophy this season for the first time since the 2009/10 campaign.
The Frenchman said on Monday that he chose to leave because the club “no longer has the faith in me I need”.
It is the second time the former Real midfielder has left his role as manager. In 2018 he departed after winning nine major honours during his first spell, including three Champions Leagues.
The move for Ancelotti – who previously coached Real between 2013 and 2015 – developed quickly, with president Florentino Perez personally leading negotiations following the departure of Zidane.
During his first spell at the Bernabeu, Ancelotti led Real to victory in the 2014 Champions League final against rivals Atletico Madrid, as well as Copa del Rey, UEFA Super Cup and Club World Cup glory that year.
However, he was sacked in 2015 after ending the season without a major trophy, after which he went on to coach Bayern Munich and Napoli, before joining Everton.
He steadied the ship at Goodison Park after replacing Marco Silva mid-season, and then oversaw the Toffees’ push for European qualification this campaign.
However, Everton’s season was undermined by their consistently poor home form – they won just six matches in their own stadium in the Premier League – which ultimately saw them finish 10th.
Ancelotti had been linked with a return to Real for several weeks, but dismissed those reports in May as “not true”.
“This is good publicity for me to be linked with Real Madrid but it is not true,” he said. “I am really happy to stay here.
“We have difficulties of course, but I feel good at Everton and my target is to make Everton better and better every year.”
