They still keep rumouring this but I don't believe this will happen anyway.
Ancelotti has already stated his intention to stay at Real Madrid longer. Why would he change his mind all of a sudden? I mean unless Florentino Perez decides to part ways with him...
I have also come across such comments a number of times they states Ancelotti’s interest in continuing with Real Madrid but today I came across one that if Real Madrid crash out of the champions league this season the club would consider replacing Ancelotti but honestly man has nothing to lose after all a job with the Brazilian national team awaits him all he needs to do is say yes and it will be done.