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...
It is currently possible even for Ancelotti to be fired if only the Champions League and La Liga are released so that indeed for next season his chances of staying if without a title then it is definitely difficult.
He is one of the great coaches and even with what he did at Madrid before proving that he is one of the successful coaches but the conditions in Madrid are different, Perez sometimes mercilessly cuts anyone's contract regardless of whether he has previous services or not when he is considered not too suitable for the club then he will be allowed to leave or replaced so that Madrid's conditions are maintained.
At the moment, that is possible, Madrid are in a difficult situation with La Liga currently being severely hampered by Barcelona and the Champions League being a slim chance despite leg 2, so it is possible that Perez will look for an alternative coach to replace Ancelotti.