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It was almost settled. Real Madrid were going to replace Carlo Ancelotti with Rafa Benítez, but several polls and surveys have shown that the fans simply do not want him as Real's manager. That's mainly why President Florentino Pérez isn't entirely convinced about giving Benítez the job, meaning that he could reconsider his initial decision and appoint somebody else.
Apparently, Unai Emery is one of those men who is gaining momentum, according to several Spanish outlets like AS and SportYou. The current Sevilla coach has completed two brilliant seasons with the Andalusian team and he could win his second consecutive Europe League title. While Emery might not be ready to handle Real Madrid -- his man management skills have not been tested as much --, the fans do not want Rafa Benítez, and Florentino Pérez is not ready to start the 2015-2016 season with a coach who doesn't have the support of the fans.
All in all, Pérez still has to make up his mind and make the final decision about Real's next coach.