Carlo Ancelotti is one step away from being confirmed as the new Italy CT, according to reports on Tuesday morning.

The Azzurri have been without a permanent Coach since Giampiero Ventura’s sacking, with Luigi Di Biagio taking the team for the friendlies with Argentina and England.

A new man is set to be installed by May 20, and it was widely assumed that would be Zenit St Petersburg Coach Roberto Mancini.

Now though the Corriere dello Sport is reporting that Ancelotti met with FIGC commissioner Roberto Fabbricini and sub-commissioner Alessandro Costacurta in a Rome hotel on Monday.

The meeting lasted over an hour-and-a-half, with the pair pushing Ancelotti toward accepting the job.

There is no definitive agreement, however, with the sticking point relating to the financial aspect of any deal.

The FIGC’s budget for the CT and his staff is €5m per year, representing a big drop from what Carletto earned at Bayern Munich and could still command in club management.

Antonio Conte was paid €4.1m per year, but it’s thought part of that salary was paid by Puma.

To try and overcome this hurdle, Costacurta offered Ancelotti a free choice on his staff, with his son Davide likely to join the setup, along with a player from his Milan side, possibly Andrea Pirlo or Massimo Ambrosini.

The former Real Madrid Coach has also been linked with Arsenal, as well as a return to former club Chelsea.