Los Blancos are struggling this season and sit eight points behind fierce rivals Barcelona in La Liga and also lost the Spanish Super Cup to the Catalan Giants.
Spanish publication Sport have reported that because of this club president Florentino Perez could be prepared to take drastic action and sack Ancelotti.
The Italian is currently in his second spell in charge of the Spanish giants and lead them to a Champions League and La Liga double last season.
The report adds that if Perez were to take decisive action against Ancelotti, Madrid legend Zidane would be open to managing the club for a third time if a key signing was made.
Sport reported that Zidane would want the signing of Lyon’s Rayan Cherki guaranteed as the French legend has been captivated by his performances.
Zidane is a legend in Madrid having enjoyed a very successful playing career for the club.
The Frenchman guided the Spaniards to three consecutive Champions League titles during his first spell in charge a feat no other manager has achieved.
He has also took Madrid to the Spanish title on two occasions.
He was coach at the Bernabeu from 2016 to 2018, and then again from 2019 to 2021.
Zidane has been out of work since he resigned as Madrid manager in May 2021 having overseen a trophyless season which saw them miss out on the La Liga title by two points to city rivals Atletico Madrid.