The La Liga club had an approach for the Liverpool full-back turned down earlier this week but the coach is refusing to discuss a potential move for the player - whose contract at Anfield expires in the summer.
Ancelotti said: "I don't want to talk about it because it isn't the moment to talk about it here. I've said we'll see, and we'll see. I'm delighted with the squad we have. We've had difficulties, but we've always been able to overcome them."
A serious injury to Dani Carvajal has increased Real's urgency to bring in defenders in the January transfer window but Ancelotti is reluctant to discuss potential additions to his team.
The Italian coach said: "Talking about that in this context is difficult. We'll see. We'll see. That's the only thing I can say. We have a lot of games in January, we're focused on that. Talking about the market isn't straightforward for me right now."
Madrid play their first game of the year against Valencia on Friday (03.01.25) and Ancelotti is targeting victories in what will be a key month for the team's season.
He said: "Now we have games to win.
"The team has reacted well and is now more motivated, excited, and in better form. Players have come back, (David) Alaba has started training with us. So for now, the atmosphere is good and we have to maintain that good atmosphere, and we can only do that by winning games."
Real are in the thick of a close title battle with rivals Atletico Madrid and Barcelona and Ancelotti believes that fewer points will be required to win the league this year.
He said: "But the level of competitiveness in the league means you'll need fewer points to win the league. With Atletico, us and Barcelona, that means more uncertainty and the points you need [to win the league] will be under 90."