Xabi Alonso is reportedly close to becoming Real Madrid's new manager as the pressure on current boss Carlo Ancelotti continues to increase.

Madrid have suffered two harrowing defeats in the space of a week having been hammered 4-0 by Barcelona at the Bernabeu ahead of a 3-1 loss to AC Milan on Wednesday that leaves them 17th in the Champions League.

TEAMtalk claim Madrid president Florentino Perez is 'extremely unhappy and dissatisfied' with the performances under Ancelotti this season, though he is also aware of issues the legendary manager faces behind the scenes.

An issue named Kylian Mbappe, who has 'created problems amongst the squad' and is 'considered to be a disruptive influence in the dressing room'.

Xabi Alonso was heavily linked with a move to Liverpool but decided to stay at Bayer Leverkusen after their historic double last season, with many believing he made that call with a view to taking over from Ancelotti at the Bernabeu.

Ancelotti was said to be interested in taking over the Brazil national team before signing a new contract with Madrid last year and a move into international management looks the most likely recourse for the Italian when he leaves or is dismissed.

The report claims 'no decision has been made on Ancelotti yet' but his 'position as Real Madrid manager is at risk' after their poor start to the season.

Alonso is Perez's 'top choice' to replace Ancelotti and the report claims he's 'been directly in contact with Alonso's entourage for months and now', adding that 'even though there are still over six months to go until the end of the season, the manager is close to verbally agreeing to becoming the new Madrid manager'.