Real Madrid and Marcelo's agent Caio Alves have been discussing the possibility of signing a single-year contract extension, according to reports from Spanish media Gol TV and ABC. Marcelo appeared to be on his way out of the club this summer but it looks like the defender wants to stay for another year, even if he hasn't played relevant minutes all season long.
As a player, it's quite clear that Marcelo is just not a viable option for Carlo Ancelotti. He's simply not reliable as a defender anymore and Madrid would still have to sign or find a solid backup left-back if Marcelo stays. However, that part might as well be solves if Los Blancos sign Rudiger, as that move would allow Ancelotti to move Alaba to the left-back spot whenever needed.
Marcelo is definitely a club legend. He became the player with most titles won in the history of the club just a few weeks ago and he's a good presence in the dressing room because of his leadership. Still, there's no way Madrid should keep him around unless Marcelo decides to accept a significant salary cut in his current deal.