The Los Blancos are already planning for the future, with Ancelotti in his final 12 months at the club.
As per a report in BILD, Alonso will be returning to Real Madrid at the end of the 2023/2024 season.
This time, Alonso will take over as the manager at Madrid, where he played 236 matches in the midfield.
The Spaniard started his coaching career as a Real Madrid youth coach in 2018 before moving to Real Sociedad B in July 2019.
The former Liverpool midfielder took over at Bayer Leverkusen in October 2022 and has won 17 of the 37 matches at the Bundesliga club in all competitions.