Real Madrid and it's legend Xabi Alonso have reportedly reached an agreement on a three-year contract for the latter to assume the role of head coach, succeeding Carlo Ancelotti who is on his way out of the club.

Xabi Alonso is set to return to Real Madrid as head coach after confirming he will leave Bayer Leverkusen this summer, ending weeks of speculation over his future.

After nearly two years at the club—guiding them to their first-ever Bundesliga title and a domestic double with the DFB-Pokal, the Spanish tactician is now set to take the next step in his managerial career.

"We have agreed together with the club (Bayer Leverkusen) that these are my two last matches with the club." Said Alonso in an interview on Friday afternoon.

He will replace Carlo Ancelotti, who appears bound for the Brazil national team job after another successful second spell with Los Blancos.

Alonso, who played under Ancelotti during the Italian's first stint between 2013 and 2015, spent time with the Real Madrid U-14 when working on his UEFA Elite coaching courses in 2018.

He then moved to Real Sociedad in 2019, where he remained until October 2022, when he moved to Bayer Leverkusen to replace Gerardo Seoane with the team second from bottom after eight games into the Bundesliga season.

At the end of his first full season, Xabi Alonso had an astonishing run, ending Bayern's Bundesliga dominance by winning Leverkusen's first-ever title and sealing the deal by winning the DFB Pokal to complete a domestic double.

He also led the team to the UEFA Europa League final, where they unfortunately lost to Atalanta in Dublin.

They struggled to match the standard this season, although the club is much different from the Leverkusen of the past.

Bayer Leverkusen has already secured runner-up spot in the Bundesliga, reached the DFB Pokal semi-finals where they disappointingly lost out to Arminia Bielefeld, and reached the UEFA Champions League round of 16.

Alonso has achieved the peak with the North Rhine-Westphalia club, and will take up a new challenge at the start of next season.

Xabi Alonso has already confirmed the next two games are his remaining assignment with Leverkusen, which may see him on the sidelines for Los Blancos during the Club World Cup in the United States this summer.

For now, Real Madrid remain focus on the LaLiga title and a decisive clash with Barcelona this weekend.