Fabio Capello described Carlo Ancelotti as 'the greatest Italian coach' of all-time and said managing Br azil would be a 'dream' end to the 63-year-old's career.
Ancelotti was linked to the Br azil job after Tite vacated the role following their World Cup quarter-final defeat by Croatia last year.
ESPN Br azil reported on Friday that Ancelotti had said 'yes' to taking up the job at the end of the 2022-2023 LaLiga season.
However, the Br azilian Football Confederation have denied such reports - claiming the rumours linking Ancelotti with the Br azil job were 'unfounded.
Ancelotti also confirmed his plans to stay at Real Madrid after his side beat Al-Hilal on Saturday in an exciting eight-goal FIFA Club World Cup final.
However, Capello has said he 'hopes' Br azil hire Ancelotti as he believes the 63-year-old is the greatest Italian manager of all-time.
Speaking to Radio Rai, via Marca, Capello said: " Ancelotti is a great coach, the greatest we have had in Italy, he is the best of all because winning everywhere is difficult."
Capello went on to highlight the fact that taking charge of a national team is 'very different' to managing a club side.
Although, Capello believes Ancelotti- - who has won titles in each of the five major European leagues - has what it takes to succeed.
He said: "It's an interesting idea, very beautiful. Coaching a national team is very different, but managing Br azil for him could be a dream at the end of his career, as it was for me the England bench. I hope it will be so."
Br azil were knocked out of the World Cup in Qatar at the quarter-final stage, after one of the pre-tournament favourites were knocked out on penalties by Croatia.
Manager Tite then confirmed he would leave the role, and while Br azil are still officially without a manager, they have plenty of time to make a decision.
Ancelotti had been linked with the vacant managerial role and ESPN reported on Friday that the 63-year-old Italian had said 'yes' to taking up the job at the end of the season.
The reports said he would leave the Bernabeu before the end of his contract in Madrid, which runs to June 2024, in order to take the Br azil job on a deal that would run from 'July until the end of the 2026 World Cup'.
However, the Br azilian Football Confederation denied such claims and said their new coach would be 'announced at the right time'.
Their statement read: "The Br azilian Football Confederation informs that the news released on Friday that the coach of Real Madrid, Italian Carlo Ancelotti, is the new coach of the Br azilian national team is unfounded."
'President Ednaldo Rodrigues maintains the statements given on Wednesday, after the drawing of the matches for the Copa do Brasil.
"At the time, the official ruled out speculation, saying that the matter is dealt with transparently and that the coach chosen will be announced at the right time."