Carlo Ancelotti has said Real Madrid have assured him he will be in charge next season despite this week’s 4-0 Champions League defeat to Manchester City, calling the past two seasons “unforgettable” and arguing that the team’s transition to a new generation is already underway.

Madrid’s semifinal second-leg loss at the Etihad Stadium means they will end the season without lifting the Champions League or LaLiga, although they did pick up the Copa del Rey this month and won the UEFA Super Cup and FIFA Club World Cup earlier in the campaign.

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ESPN reported on Friday that Ancelotti’s job as manager was not at risk, and that the coach was set to meet with president Florentino Perez to discuss plans for next season.

“[Perez and I] spoke yesterday,” Ancelotti confirmed in a news conference on Saturday ahead of Madrid’s LaLiga game at Valencia. “We had a meeting, and he showed me his support. We talked about Wednesday’s game [against City], we talked about the season we’ve had and the two seasons that we’ve had. We move forward, with the same desire to do things well.”

When asked if the club had guaranteed that he would remain in charge next season, Ancelotti replied: “Yes.”

Ancelotti has been repeatedly linked with taking over as Brazil national team coach — with the president of the Brazilian football federation Ednaldo Rodrigues describing the Italian manager as their “Plan A” and “our favourite” — but on Saturday, Ancelotti appeared to rule that out.

“I think everyone knows my situation,” he said. “I have a contract until June 30, 2024, and I want to see it out. Everyone knows that.”

Ancelotti’s first season back at Madrid in 2021-22 ended with a triumphant LaLiga and Champions League double, but this season has proved more difficult, with Barcelona crowned as Spanish champions last weekend thanks to their 14-point lead at the top of the table.

“We’re evaluating what we’ve done,” Ancelotti said. “The last game [against City] was very bad. We’re all hurt by that. But right now the season has been a good season. And the last two seasons have been unforgettable.

“It’s been a good season, for me. Obviously we could have done better. We’ll assess what we haven’t done well. We didn’t do well in the league, but we fought for the Champions League until the end.”

The City defeat led to calls for Madrid to move on from veterans such as Luka Modric, 37, Toni Kroos, 33, and Karim Benzema, 35.

“The transition won’t start next season. The transition had already started even before I arrived,” Ancelotti said. “This squad, which has done great things, started to lose pieces when Cristiano Ronaldo left in 2018. When I arrived that transition continued, losing [Raphael] Varane, [Sergio] Ramos, Marcelo, [Gareth Bale], Isco. … All players who’ve been replaced by youngsters of extraordinary quality.

“Vinicius is now an undisputed starter. Rodrygo looks like an undisputed starter now, [Eduardo] Camavinga looks like an undisputed starter, [Federico] Valverde looks like an undisputed starter. … The transition has already started, and it will continue next season. The youngsters will have more of a role and the veterans will have a little less of a role. That’s normal.”

ESPN has reported that Madrid will look to sign a centre-forward this summer to provide competition for Benzema, who struggled to make an impact against City.

“Doubting Karim Benzema doesn’t make sense,” Ancelotti said. “A player of that level can have a bad game, but it wasn’t him alone. Karim is still a very important player, a legend at this club. On Wednesday the team didn’t get it right, not just Karim.”