Ancelotti has a contract with Real Madrid until the summer of 2024 but he remains the favourite to lead the five-time world champions.
Brazil are yet to name a successor to Tite, who stepped down after the Selecao's quarterfinal elimination at the 2022 FIFA World Cup in Qatar.
Ramon Menezes took temporary charge of last week's 2-1 friendly defeat to Morocco.
Ancelotti is aware of interest from Brazil and has been backed to fulfill the role by some of the country's top players and football administrators.
Speaking ahead of Real Madrid's La Liga encounter against Real Valladolid on Sunday, Ancelotti reiterated his commitment to the course at the Santiago Bernabeu.
"The only thing that concerns me right now is to be successful with this club," he said.
"I will remain here for as long as Real Madrid want me to. I feel affection from the president, from the players, from the fans.
"Also the atmosphere here is quite calm, quite good, and we have two months ahead in which we will try to win some titles and hopefully I will continue here as Real Madrid head coach."
He added: "The truth is that the Brazil national team wants me, they are interested in me and I love that. But then you have to respect contracts and there's a current contract with Real Madrid and I would like to continue here."
"Everyone can think or say what they want, but reality is reality," he said. "In this case it's quite simple, I have a contract with Real Madrid and I want to continue here.
"I love this club and everything that can happen later, I don't know. The future is unknown."
