Ancelotti leaves job at AC Milan

Carlo Ancelotti took a step closer to becoming Chelsea's new manager after he announced his contract at AC Milan has been terminated by mutual consent.

But the Italian, who guided Milan to third in Serie A, said a move to Stamford Bridge has yet to be agreed.

He said: "I have agreed to leave Milan. The decision was by mutual consent. But a move to London is not certain yet."

Milan announced technical director Leonardo will replace Ancelotti as manager for next season.

Ancelotti signed off his eight-year reign at the San Siro with a 2-0 away victory over Fiorentina, a result which secures automatic qualification for next season's Champions League group stages.

Although he refused to confirm his future with Chelsea, the 49-year-old did say he will not be joining another club in Italy.

"In agreement with the club, we have decided to bring forward the expiry of my contract," he said. "This beautiful adventure at Milan is over.

"I can't say anything else official. I have not made any agreement with any other club. I am certainly not staying in Italy."