Real Madrid are believed to be on the brink of firing manager Julen Lopetegui following Los Blancos' dreadful start to the season.
The Champions League holders are coming off a shameful 5-1 El Clasico loss to Barcelona, a result that leaves them ninth in La Liga, and a whopping seven points adrift of top spot.
However, according to Spanish journalist Jose Luis Sanchez, Castilla boss Santiago Solari will take charge of Madrid's next two games against Melilla and Valladolid as negotiations with Conte have stalled.
The Italian has already come to a settlement agreement with Chelsea and is free to take over at the Bernabeu, per reports. But it is not clear what exactly is holding the announcement up. Lopetegui, meanwhile, seemed hopeful over keeping his job following Sunday's loss to Barcelona.
“I feel sad at the moment, but with full strength to remain in charge of this group," he told reporters, via Goal. “This is a tough blow, but I am strong enough to know everything can be turned around. There is a long way to go, and I have a lot of faith in this group of players.
“We all know how the world of football works, and the final responsibility lies with the coach. I am not stupid. But here we win together, and lose together.I still believe we are in an [early] stage of the season, and Madrid this year will celebrate."