Rafael Benitez has rejected a proposal from West Ham to take charge at Upton Park next season and is instead in preliminary discussions with Real Madrid.
Carlo Ancelotti's position at Real Madrid is uncertain after he failed to win La Liga and also failed to help Los Blancos defend their Champions League crown.
Real Madrid are drawing up a list of possible replacements for the Italian and Benitez is amongst the candidates, with preliminary discussions having commenced with the former Liverpool manager.
As a result, according to Sky Italia, the current Napoli boss has been in touch with West Ham and knocked back an offer from the Premier League club.
Benitez had reached an agreement in principal with the Hammers, but with interest from Real Madrid, has backed out of a deal.
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It is also claimed that the Spaniard has fielded informal approaches from Liverpool and Manchester City, however Real Madrid's interest is the most concrete.
Napoli have been keen to keep Benitez at the club, but it now appears the former Liverpool manager is heading away from Italy in the summer.
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