Kane's future is up in the air after Spurs' disappointing season, which saw them finish eighth in the Premier League and miss out on European competition.
The England captain has since been linked with a move to the Santiago Bernabeu in recent days having now entered the final year of his contract with Spurs.
Asked about Kane ahead of Real's final La Liga match of the season, Ancelotti refused to be drawn into any transfer rumours.
"You are very interested in what is going to happen next season. I can talk about my future but not the future of the squad," Ancelotti said in a press conference.
"Kane is a great player, but he is a Tottenham player and we have to respect him and Tottenham."
Reports linking Kane with a switch to Madrid come with Karim Benzema's future in doubt after 14 years with Los Blancos.
The French striker is thought to have been offered a lucrative deal from Saudi Arabian champions Al-Ittihad and is mulling over his decision.
