Ancelotti wants to leave Paris to take over at Real although the French side have been reluctant to let him leave.
According to A Bola, a fee of €25m has been agreed for the Argentine winger to move to Paris.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.