The Italian said the Brazilian Football Federation (CBF) want him to replace Tite (61), after the coach stepped down following the Selecao's World Cup 2022 surprise quarter-final exit, with Ramon Menezes (50) currently in charge on an interim basis.
Ancelotti's contract with Real Madrid ends in June 2024 and the veteran Italian says he will respect his deal with the Spanish champions.
"Yes, the reality is that the Brazilian national team want me, I love that and it excites me," Ancelotti told a news conference.
"After that, you have to respect the contract, a contract that I want to see out."
Ancelotti said he is happy at Real Madrid in his second spell at the club, but that nobody knows what could happen in the future.
"Everyone can say what they want, and then there's the reality," added Ancelotti.
"In my case, it's quite simple. I have a contract and I want to see it out because I like Real Madrid, I like this club and anything that can happen after that is in the future, and nobody knows the future."
Madrid are currently second in LaLiga, trailing leaders Barcelona by 12 points.
Ancelotti's side host Real Valladolid on Sunday in the top flight before facing Barcelona in the Copa del Rey semi-final second leg on Wednesday.
