Ancelotti has enjoyed a successful spell at Real Madrid in the past, and he helped them win a Champions League trophy during his time at the club.
It will be interesting to see if the Italian can lead them to success next season as well.
The Spanish outfit failed to win a single trophy last year, and the Italian will be under pressure to guide them back to winning ways.
According to reports, Everton are now looking at potential replacements for the Italian. They have identified the likes of Roberto Martinez, Rafael Benitez, Steven Gerrard and David Moyes as candidates who could replace Ancelotti.
Roberto Martinez has done a quality job for the Belgian national team over the last few seasons. He could prove to be a reasonably good appointment for the Merseyside outfit. He has managed Everton before, and he will be prepared for the challenge ahead of him.
Meanwhile, David Moyes has managed to guide West Ham to a top-six finish in the Premier League, and he knows Everton well from his time at Goodison Park in the past. But West Ham had an impressive run under the former Manchester United manager and he may not consider a change at this point.
Elsewhere, Steven Gerrard has guided Rangers to an unbeaten league campaign, and he could prove to be an exciting addition as well. He could be ideal candidate with his impressive resume with Rangers and this opportunity could be another step towards Anfield.
Former Liverpool manager Rafa Benitez is a proven winner across different leagues, and he’s probably the most high profile name linked with the move to Everton. But Everton are perhaps looking for something different as manager.
Some of the other names linked with Everton include Paulo Fonseca and Erik ten Hag. The former will be out of contract as Mourinho is replacing him at Roma, but the later had already renewed his contract with Ajax.
Frank Lampard has done an incredible job with Chelsea, in restructuring the club resources. Though he perhaps failed in certain areas, but he is young and competent. Everton could be his big ticket to the big league for Lampard and Everton both, if both the parties are interested to take this challenge.
It will be interesting to see who Everton end up appointing eventually.
All the managers have done impressive jobs at their respective clubs, but neither has been as successful as Carlo Ancelotti in their managerial career.