Next Everton manager: The candidates who could replace Carlo Ancelotti, who heads to Real Madrid

Carlo Ancelotti has quit Everton to rejoin Real Madrid, leaving the Merseysiders’ reeling from having to appoint a fifth manager in five years.

The Italian finalised his Goodison Park exit on Tuesday having agreed a two-year contract with the Spanish club he previously managed between 2013 and 2015.

Everton’s late attempts to convince Ancelotti to stay during a frantic last 48 hours could not dissuade him from returning to the Bernabeu stadium, where he will replace Zinedine Zidane.

“While I have enjoyed being at Everton I have been presented with an unexpected opportunity which I believe is the right move for me and my family at this time,” said Ancelotti in a statement released by Everton.

“I have complete respect for everyone associated with Everton and hope they can achieve the exciting opportunities they have in front of them.”

For Everton owner Farhad Moshiri, Ancelotti’s departure is an unexpected and depressing setback, leaving him embarking on an all-too-familiar recruitment process.

Ex-Wolves coach Nuno Espirito Santo, who is in talks with Crystal Palace about replacing Roy Hodgson, immediately emerged as a possible replacement.

Former Bournemouth manager Eddie Howe, who has been interviewed for the Everton job previously, will certainly be a contender. So too will former Everton boss David Moyes, while ex-Liverpool coach Rafa Benitez is among the more intriguing candidates as Moshiri gets to work on a shortlist. German coach Ralf Rangnick, who has been a contender for the Everton job previously, will also be under consideration.

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If there is any consolation for Everton after losing a manager of such calibre, it is financial. The Italian is walking away from an eye-popping deal worth around £11 million a year.

As well as cutting that considerable investment, Moshiri's final negotiations were understood to be focused on securing a compensation figure from the La Liga giants.

There is no disguising how hurt Everton will feel by Ancelotti's decision. Ancelotti moved to Goodison in December 2019 and often spoke of his long-term plans on Merseyside. Asked about the Madrid job at the end of last season, he downplayed the possibility of a return: “This is good publicity for me, to be linked with Real Madrid, but it's not true. I'm really happy to stay here. Obviously we have difficulties but I feel good here at Everton and my target is to make Everton better and better every year.”

Circumstances changed over the last week, with Zidane quitting and Real making Ancelotti their number one target.

The speed with which events moved over the last 24 hours caused consternation and shock among the Evertonians who had embraced Ancelotti and felt he was the manager of world renown who would lead the side back to the upper echelons of European competition.

The Everton board became aware of Madrid’s approach over the weekend, but it became clear that any hopes Ancelotti would reject the approach were misplaced as he set his heart on returning to Spain.

Now his brief stint at Goodison Park will be considered a curiosity, ultimately promising more than it delivered over the course of 18 months.

Moshiri backed Ancelotti with high-profile transfers, including shifting from his favoured transfer policy by signing players like James Rodriguez and Allan, both in their late 20s when joining last summer. Ancelotti’s exit is bound to raise questions about his highest-profile recruit - Rodriguez - who made it clear last summer he chose Everton partially because of his relationship with the manager. He worked with Ancelotti during the Italian's previous spell at Madrid and said he joined because he felt the club could qualify for the Champions League.

Initially, that faith looked like being handsomely rewarded. Everton were on course for European qualification for much of the season thanks to impressive away results; Ancelotti getting the most out of striker Dominic Calvert-Lewin, especially. But they badly faltered in the second half of their campaign, paying the price for nine home defeats as they struggled to come to terms with lockdown football on their own patch.

The campaign ended in despair after a 5-0 defeat to Manchester City.

The poor finale prompted the first mutterings from supporters, although the majority commended Ancelotti for getting the most out of a limited squad rather than chastising him for a missed opportunity.

There was an anticipation - encouraged by the manager’s public announcements - he was already working on bringing in new targets alongside director of football Marcel Brands.

Not for the first time, Moshiri will be desperate for a semblance of stability when making his next choice. Since 2016 he has sacked Roberto Martinez, Ronald Koeman, Sam Allardyce and Marco Silva, as Everton have consistently struggled to find the right fit.

He hoped Ancelotti was the man to see through the job for many years. Now it is back to the drawing board for the Everton owner as he seeks the candidate who can capture the imagination of supporters and deliver the results to propel the club into Europe.

Nuno, who left Wolves at the end of the season, is eager to remain in the Premier League. Howe has not managed since his Bournemouth departure last summer, but some among the Everton hierarchy have been long-term admirers, seeing him as the kind of coach who will build for the long-term.

Moyes’ credentials have been strengthened since he was overlooked for both Silva and Ancelotti. A reunion might appeal to the notoriously romantic Bill Kenwright.

Whoever gets the job, Moshiri will be eager for someone who can bring the revolving-door managerial situation to an end.

“Everton would like to place on record its thanks to Carlo for his service to the club over the past 18 months,” read Everton’s statement.

“The club will begin the process of appointing a new manager immediately and will provide updates in due course.”

Six contenders to take over from Carlo Ancelotti at Everton

Eddie Howe: Has admirers in the Everton boardroom already and is readily available, after a much-touted move to Celtic failed to materialise. A boyhood Everton fan, Howe has a point to prove after his last season in the top flight with Bournemouth ended in relegation. Fans might need some convincing that he has the stature befitting their club, however.

Nuno Espirito Santo: Widely praised for his work at Wolves before a difficult final season, Nuno is also a free agent and would not be fazed by taking over. He did cut an exhausted figure by the end of his time at Molineux and is known to be unhappy at being separated from his family in Portugal. His football is pragmatic rather than purist, but he has the nous to adapt to different resources.

David Moyes: His star is back in the ascent after a superb season at West Ham ended in European qualification. Widely expected to sign a new three-year contract at the London Stadium but the fact that he is yet to formally sign terms might offer Everton a sniff. Might be a strange time to leave West Ham but Moyes' bond with Everton runs deep.

Ralf Rangnick: Another who has been admired in the past, Rangnick's influence on coaching has been felt throughout Europe. Has not been a manager since 2019, when he moved upstairs at RB Leipzig, so may not exactly hit the ground running, but would definitely win hipster approval.

Graham Potter: The golden boy of English coaching, despite Brighton's underwhelming 16th-placed finish in the Premier League, Potter's progressive football would surely appeal to supporters. The question remains over whether he has the stature and temperament to take over a big club, but to know the answer, he needs a chance.

Rafael Benitez: A move for the man who won Liverpool's first European Cup in 21 years in 2005 would be incendiary but makes sense. Benitez still has a house near Liverpool, he is available after a spell in China and has been hankering after a return to the Premier League for some time. Fans sceptical over his red past might forget that soon enough if results picked up.