The former Chelsea boss is under increasing pressure at Real Madrid having seen them drop out of the Champions League.
Madrid drew with Juventus at the Bernabeu on Wednesday and were eliminated at the semi-final stage.
After the game he admitted he didn't know what his future would hold.
He said: "I don't know about my future. We have to close out the season and after that we can talk to the club."
Ancelotti guided Madrid to their tenth European Cup last season, but with Barcelona in pole position in La Liga his time could be numbered.
Manuel Pellegrini is also under pressure with Man City facing a trophy-less season.
City have been linked with a move for Pep Guardiola, although he has stressed that he will stay at Bayern Munich.
And, according to Spanish publication Sport Mediaset, Ancelotti will now head to the Etihad when the season is over.
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