Carlo Ancelotti has said Real Madrid's bid to sign Kylian Mbappe is "a matter for the club" as he focuses on preparing to face Real Betis in LaLiga on Saturday, while admitting the Paris Saint-Germain forward is "a great player" and improving the squad would be "better for everyone."

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Sources have told ESPN that Madrid and PSG are nearing a deal for Mbappe -- with optimism that an agreement could be reached soon -- after the Spanish club made a second offer worth €180 million, having had an original €160m bid rejected earlier this week.

"With a lot of respect, I have to say it's a matter that the club is managing," Ancelotti said in a pre-match news conference on Friday. "For me, I'm thinking about tomorrow's game, and the players too. It's a matter for the club, I understand it interests everyone, but right now I can't say more."

"If I say Mbappe is a great player, I speak the truth," he added, as he tried to deflect a number of questions on the forward's possible signing. "I have to repeat, we have a fantastic squad, I'm focused on that. We have a squad that can compete with any team in the world.

"I'm happy with the squad I have. If the squad improves, that's even better for everyone."

The arrival of Mbappe would provide more competition for Eden Hazard, whose contribution since moving to the Bernabeu in 2019 has been severely limited by a series of injuries linked to ankle problems which have seen him score just four league goals in two years.

"Hazard is a very important player, everyone knows it," Ancelotti said. "He's played the first two games, he's recovering from a period of injuries, he's doing it well. His motivation is good, he's a very, very important player for us."

Hazard has been linked with a move to Juventus to replace the departing Cristiano Ronaldo, whose return to Manchester United was confirmed on Friday.

"It's a good thing. Cristiano Ronaldo returns to a team where he's loved," Ancelotti, who coached Ronaldo at Madrid from 2013 to 2015, said.

"He did well there for a long time. For United he's a good signing, I wish him the best. I have a good relationship with [Ole Gunnar Solskjaer], I like the club."