Real Madrid have opened negotiations over the renewal of Carlo Ancelotti's contract, according to AS.
Ancelotti's current deal is due to expire in June 2016, but Madrid have been impressed with the Italian's work since his arrival in the summer of 2013 and are set to offer him a one- or two-year extension.
Having guided the club to the long-awaited La Decima last season -- a 10th European Cup -- as well as securing the Copa del Rey, Ancelotti's side have started the current campaign in exciting fashion.
Madrid currently sit top of La Liga while they have racked up 11 consecutive victories in all competitions, scoring 46 goals in the process, since the derby defeat to Atletico Madrid in September.
As well as the positive results on the pitch, the club are also believed to be appreciative of the way the Italian has the full support of his squad.
Ancelotti, who also guided Los Blancos to the UEFA Super Cup in August, hinted at extending his contract two weeks ago.
"It's been a year-and-a-half since I arrived and I am fine with everything," he said. "I want to renew, but we both have to agree. I would like to finish my career here."