Carlo Ancelotti has agreed a move to coach Bayern Munich "in principle" next season, according to a report in The Guardian.
Ancelotti, 56, was linked with the job at the Allianz Arena in October, with Marca reporting on Thursday that the Italian is set to sign a three-year contract at Bayern. Kicker has also reported that the deal is highly likely, while Bild claimed on Friday an verbal agreement has been struck.
Curren Bayern coach Pep Guardiola is expected to make a decision over his future in the next few days -- after the club's game with Hannover this weekend -- with multiple reports suggesting that he will leave the club at the end of the season.
Ancelotti, who has twice won the Champions League with AC Milan and once with Real Madrid, has been on sabbatical since departing the Spanish club in the summer.
The Italian was recently praised by former Bayern midfielder Toni Kroos, who worked under the Italian at Real last season.
"He was able to mix the success factors the best," Kroos said. "The tactical idea, the human component, which especially at Real Madrid is not easy."
Earlier this week, former Bayern boss Ottmar Hitzfeld said Guardiola will be appointed as Manchester City manager next summer, although Manchester United and Chelsea are also reported to be keen on the Catalan coach.