Whilst the urbane Italian is likely to be a huge loss for Los Blancos, the likes of Vinicius Junior, Rodrygo and Eder Militao will surely be overjoyed, Endrick perhaps less so if Ancelotti's club preference in terms of strikers remains the same at international level.
What's particularly intriguing about the appointment is that the 65-year-old will be only the fourth foreign coach in the Selecao's history.
Previous incumbents in the post who were non-Brazilians were Uruguayan Ramon Platero way back in 1925, Joreca from Portugal in 1944 and the Argentinian Filpo Nunez in 1965.
Between them, they managed just seven matches so Ancelotti would appear to be a 'last throw of the dice' move from the CBF (Confederacao Brasileira de Futebol) to turn fortunes around after a barren period in terms of success.
Ancelotti is universally admired and respected
Ahead of the 2026 World Cup - the trophy synonymous with Brazil but which they haven't won since 2002 - South American football expert, Tim Vickery, attempted to shine a light on why there's been a change of direction.
"Ancelotti was the main choice because he has an unrivalled tradition of success, winning in five countries," he said.
"Every campaign since 2002 has ended as soon as the side has come up against a European team in the knockout stages.
"It's become a hoodoo they want to overcome and another reason they've gone with a European coach this time round. They're saying 'if we want to beat them next time round, we need someone who knows them.'"
It's true of course that success has followed 'Don Carlo' wherever he's managed.
Though an eight-year stint at AC Milan from 2001-2008 weren't his first steps in management (he had worked at Reggiana, Parma, and Juventus prior), it was with the Rossoneri that he made his name thanks to a Champions League and Coppa Italia double in 2002/03 and a Serie A title in 2003/04.
A second Champions League with the club came along in 2007, and he would leave the club at the conclusion of the 2008/09 campaign.
Success has followed Ancelotti throughout his managerial career
A domestic double of the Premier League and the FA Cup in his first season at Chelsea in 2009/10 was followed by taking Paris Saint-Germain to their first league title in almost two decades in 2011/2012.
La Decima, Real Madrid's 10th Champions League title, and a Copa del Rey win came next and, though he was sacked by Los Blancos, he immediately went on to win the the Bundesliga title in his first season with Bayern Munich (2015/16).
Success eluded him at Napoli and Everton, but two Champions League and LaLiga doubles since he's been back at the Santiago Bernabeu suggests that everything Ancelotti touches turns to gold.
Given his age and the fact he has absolutely nothing left to prove in Europe, the Brazil job is likely to be the Italian's last, and what a way for him to finish if he's able to bring back former glories.
Certainly, it can't get much worse for Brazil than the recent 4-1 defeat to Argentina which saw previous head coach, Dorival Junior, ousted.
Will Ancelotti have to sacrifice Joga Bonito in pursuit of results?
Notwithstanding that attacking intent has underscored many of the teams he's managed, for those fans of Joga Bonito it will be interesting to see if the new incumbent plumps for a more rigid tactical style - at least initially - whilst allowing some freedom of expression as results and performance levels hopefully begin to move in a more positive direction.
Let's not forget either that Ancelotti has worked with the likes of Marcelo, Thiago Silva, Kaka and Cafu in the past at his various clubs and got the best out of them and their teammates.
He's won five Champions League titles as coach - no one has more - and is the only coach to date to win the league in all five top European leagues (Premier League, Bundesliga, Ligue 1, LaLiga and Serie A).
It's clear that as a manager he 'gets it' too in terms of when to allow the egos of his best players to inflate a little but also when to rule with an iron fist. Think about it, when have you ever seen any of his players disrespect him?
That ability to manage the dressing room no matter the personalities within is a rarity, but his success automatically gives him the kudos.
For some while now that kind of authority and aura has been missing for Brazil.
Ancelotti's history of winning should serve him well
Over the last few World Cups as Tim Vickery said it's been noticeable that Brazil have lost to European teams, and perhaps that can be seen as a good enough reason to employ not just any European coach but the best in class.
"He is the greatest coach in history, and now he is at the helm of the greatest national team on the planet. Together we will write new glorious chapters in Brazilian football," federation president, Ednaldo Rodrigues, joyously proclaimed to anyone that would listen.
Although Ancelotti's final season in Madrid is likely to end in disappointment in terms of trophies his win percentage still puts him in the upper echelon of managers, and in his last four seasons with Los Blancos his record certainly stands up to scrutiny.
39 wins from 56 games played in 2021/22 gave him a 69.6% showing, 38 wins from 59 games in 2022/23 made it 64.4% wins, 2023/24 saw a 74.5% win ratio (his best in the last 10 seasons) after picking up 41 wins from 55 games, and even in 2024/25 Ancelotti has managed 37 wins from 58 games for a 64.4% offering.
Though it would be a surprise for him to not be successful in his new venture, taking the reins for Brazil is going to be very much different to what he's used to.
He'll have the buy-in from Vinicius et al which will clearly make his settling-in process easier, but positive results will have to follow... and quickly.
