Ancelotti agrees new Real Madrid contract

Carlo Ancelotti has verbally agreed terms with Real Madrid over a new contract.

Marca says Ancelotti and Real have settled on a one-year extension to his current deal, which runs to 2016.

Real hope to announce the agreement over Christmas - after the Club World Cup.

Real president Florentino Perez is delighted with the work of Ancelotti, who also enjoys the full support of the locker room.

The Italian is currently in his second season in Madrid.