The 53-year-old admits he has informed the Ligue 1 champions that he plans to relinquish the reins at the club, as he reveals that an offer from the Blancos is on the table
The Italian has long been rumoured to be set to depart the Parc des Princes this summer despite guiding the Parisians to their first Ligue 1 title in 18 years, and the Blancos have repeatedly been mooted as his likeliest destination.
Ancelotti was voted the French top flight's joint-best coach along with Saint-Etiennes' Christophe Galtier on Sunday, but after the award ceremony he underlined his desire to leave PSG, though he did not provide an explanation.
"I had a meeting with the president and Leonardo and I asked to leave the club. Now, I must wait for their response to discover my fate," Ancelotti told Canal+ after picking up his UNFL accolade.
"I turned off my phone [before I arrived at the award ceremony]. I have opportunities [from other teams] and Real Madrid are one of them.
"We will make a decision together because my intention is to leave the club. It's not easy because I have a very good relationship with everyone [at PSG], especially the players.
"This is not the right time to explain the reasons and maybe I will never explain why."
PSG striker Zlatan Ibrahimovic was voted Ligue 1 Player of the Year at the same event after a blistering first season in France, in which he scored 29 goals.