Carlo Ancelotti is reportedly desperate to return to England and has his sights set on managing Liverpool.
Having failed to live up to expectations this season at the Santiago Bernabeu, Ancelotti was dismissed from his role earlier this week, prompting former Chelsea and Liverpool boss Rafael Benitez to become favourite for the job.
Ancelotti was tipped to have a year off due to a back problem which he has had for some-time, however, conflicting reports claim that he has put feelers out to English clubs about a return to the Premier League.
Manchester City are one name on the list, having suffered this season under the guidance of Manuel Pellegrini.
Whilst, Ancelotti is said to be keen on taking over from under pressure Brendan Rodgers at Anfield.
The Italian boss wants to take up a new challenge and feels he could build a relatively good squad at the Merseyside club.
Real Madrid are expected to announce the signing of Benitez later on Thursday.