By Manchester correspondent Alex Stevens

Manchester City will make a new approach to entice Carlo Ancelotti following Real Madrid’s elimination from the Champions League, Football Insider sources understand.

Ancelotti is expected to leave the Bernabeu at the end of the season and City have made him their No1 target to succeed Manuel Pellegrini after learning that Pep Guardiola will not be leaving Bayern Munich for at least another year.

Football Insider reported last month that the Premier League champions have offered Ancelotti a contract after meeting  with representatives of the Italian to assess his interest in taking over at Etihad Stadium this summer.

The 55-year-old has been biding his time while waiting to see how the season pans out for Real but the man who steered the Spanish club to the Champions League title 12 months is in danger of being sacked. Real, who were already set to lose out to Barcelona in the race for the La Liga title, were knocked out of the Champions League at the semi-final stage by Juventus on Wednesday night.

Pellegrini’s position is under threat in the wake of a disastrous campaign will end without a trophy for his team. City failed to make an impression in the three cup tournaments and the best they can hope for in the Premier League is a second-placed finish.

The Citizens have been encouraged by the growing expectation that Ancelotti could be available. City made contact with him in March and are convinced that he has the pedigree that the club are looking for should they decide to dismiss Pellegrini at the end of his second season at Etihad Stadium.

Ancelotti has won three Champions League titles with two different clubs, Real and AC Milan, and league titles in three different countries, Italy, England and France.

Significantly, he also has experience of managing in the Premier League after two years with Chelsea from 2009-2011, winning the Premier League and FA Cup in his first season.