Real Madrid football coach Carlo Ancelotti has been accused of tax fraud by Spanish state prosecutors.

They allege that the Italian used shell companies to hide parts of his income during his first stint at the La Liga club a decade ago.

Prosecutors are accusing former Chelsea and Everton manager Ancelotti of two counts of tax fraud, which is punishable with up to four years and nine months in prison.

They accuse the coach of having defrauded one million euro (around £855,000) in 2014 and 2015.

The prosecutors claim that during the period in question, Ancelotti only declared the income he received from Real Madrid and did not declare income from image rights.

They accuse him of allegedly setting up a “confusing” system of shell companies to hide his extra earnings.

The 64-year-old Ancelotti coached Real Madrid from 2013-2015 before rejoining the club in 2021.

He is regarded as one of football’s most successful coaches, winning league titles in all five of Europe’s top leagues and also securing four Champions League triumphs, two with AC Milan and two with Real Madrid.