Spanish prosecutors are hoping to secure a four year and nine month prison sentence for Real Madrid manager Carlo Ancelotti for his alleged involvement in tax fraud.

Prosecutors have accused Ancelotti of setting up a “confusing” and “complex” system of shell companies to hide extra earnings.

The Italian manager was charged in 2020, having been accused of failing to pay roughly £900,000 in taxes, which prosecutors said was in relation to image rights earned during his time as Blancos manager between 2014 and 2015.

Ancelotti is expected to contest at least part of the charges levelled against him and responded on Wednesday night after his side secured their place in the Champions League quarter-finals with a 1-1 draw with RB Leipzig at the Bernabeu.

He told reporters: “It’s an old story, from 2015. The Prosecutor’s Office thinks I was a resident of Spain and I wasn’t. The money is already in the Prosecutor’s Office. Now it’s up to the lawyer to find a solution. I am convinced that I was not a resident and that I am innocent. Let’s see what the judge says.”

The charges against the former Chelsea and AC Milan boss include two offences against the Public Treasury, having allegedly failed to include income from image rights in his tax returns despite declaring himself as a tax resident in Spain and listing his domicile as Madrid.

His lawyer declined to respond to Reuters and Madrid have not yet commented publicly.

On the pitch, Ancelotti admitted tactical errors led to a deflated performance on Wednesday evening, despite Madrid sealing their spot in the last eight after goals on the night from Vinicius Junior and Willi Orban.

The Italian will now be without star player Jude Bellingham for the next two La Liga matches after the England international was hit with a two-game suspension for his response to a disallowed goal last weekend at Valencia.