Real Madrid coach Carlo Ancelotti insists he will still be at the club next season following speculation over his job in the aftermath of Los Blancos' Champions League exit at the hands of Manchester City on Wednesday night.

The defending champions lost 4-0 at the Etihad to crash out of the competition 5-1 on aggregate, resulting in a disappointing end to the season for Ancelotti and his players.

The Italian coach, who is wanted by Brazil in the summer, has previously insisted he wanted to see out his contract at the Santiago Bernabeu and was asked on Saturday if he had spoken to president Florentino Perez about his future.

"We spoke yesterday," he said in a press conference ahead of Sunday's LaLIga game at Valencia.

"We had a meeting, and he showed me his support. We talked about Wednesday's game [against City], we talked about the season we've had and the two seasons that we've had. We move forward, with the same desire to do things well."

After that, he was asked if Real Madrid had guaranteed he would be in charge next season, and he replied: "Yes."