"I want to stay at Real Madrid," the fullback said to Spanish newspaper AS on Monday.

"Since I've come back from holiday I feel really good, and Capello has given me new hope. We have had a long conversation, we have talked about everything, he wants me to stay."

Rumors had Carlos set to leave Santiago Bernabeu at the end of this season, and had linked him with Turkish side Fenerbahce on a three-year contract, with Chelsea also showing interest.

But, the return of former coach Capello, who signed him from Inter in 1996, was a huge factor for Carlos.

"He was the coach who bought me here in the first place, and he and I are always on the same wavelength. He's someone who really works hard to understand the players, and to make them feel comfortable."

With Real Madrid's new management giving the Brazilian a boost in confidence the 33-year-old player has said he hopes to add another year onto his time with Real.

"Everything has changed at the club, the president, the coach, the director of football...We are all very hopeful about this new project," he said.

"I would like to make sure of the second year of my contract so that I know I can continue in the team until 2008," he said.

"But we will have to see what happens. I have spoken to Capello and now I have to explain to Mijatovic what I told the coach."

Carlos has been a pivotal member of Real Madrid since joining them from Inter Milan 10 years ago, winning three Champions League trophies, three Spanish league titles a two Intercontinental Cups and a European Super Cup.

He retired from international football following Brazil 1-0 defeat from France in the World Cup finals in Germany earlier this summer.