The 58-year-old has been out of work since being sacked by Bayern Munich earlier this season, although he remains in high demand by a number of Europe's top clubs who are considering managerial changes.
Paris Saint-Germain are particularly keen to bring their former manager back to the Parc des Princes, with current boss Unai Emery expected to lose his job at the end of the season should the French outfit fail to progress in the Champions League.
However, The Mirror reports that the Ligue 1 leaders have been dealt a blow in their hopes to tempt Ancelotti back to the French capital, with the three-time Champions League winner thought to be willing to wait for a Premier League club.
Ancelotti was in charge of Chelsea from 2009 to 2011 and remains highly regarded at Stamford Bridge, although former Barcelona boss Luis Enrique is the favourite to take over should the underfire Antonio Conte lose his job.
The Italian would also be interested in the Arsenal job should Arsene Wenger step down at the end of the season, but the club's board are not expected to sack the Frenchman and are thought to prefer a younger manager to take over once Wenger does eventually leave.
A job in London would suit Ancelotti best after he moved back to the city following his exit from Bayern.