The Brazilian World Cup-winning midfielder, who made more than 100 appearances for Milan between 1997 and 2001, has emerged as the favourite to succeed Ancelotti if Roman Abramovich can't persuade Guus Hiddink to stay at Stamford Bridge beyond the end of the season.
Waving goodbye? AC Milan coach Carlo Ancelotti.
Ancelotti figures prominently on Chelsea's short-list for their next permanent manager but, although he has been considering his long-term future, no definite agreement has been reached.
Much is still likely to depend upon whether Milan do qualify for the Champions League and Ancelotti is given money to reinvigorate the squad. If they do again finish outside Serie A's top four, it is believed that Milan would be prepared to part company with the 49-year-old.
'Our plans are clear, we have to reach the Champions League,' said Leonardo. 'Concerning Carlo Ancelotti I think everything is extremely clear. The coach has a contract until 2010. The relationship with Milan is public. Everyone knows how much understanding there is between him and the club.'
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