The FA have already said that they would prefer an Englishman in charge when Capello steps down after the European Championships in 2012.
But Blues manager Ancelotti does not believe the nationality of the coach is the main focus of the FA: "It could be English, it could be a foreign manager, it is the decision of FA. I don't think it has to be necessarily English. There are a lot of coaches with good qualities, not just English.
"For a long time the England team has had a foreign manager, they were unlucky also. (Sven-Goran) Eriksson was not lucky."
In the wake of the headlines surrounding Manchester United’s Wayne Rooney, Ancelotti also insisted that the private lives of footballers should be respected.
Chelsea have had some of their players’ personal problems publicised as was the case with Blues’ duo Ashley Cole and John Terry.
Ancelotti, speaking on BBC 5 Live's 'Sportsweek' programme, said: "My philosophy is that I don't want to control the private lives of my players.
"My players have to know that they have to respect the shirt also when they are outside of the training ground, outside of the pitch, but I am not able to control the private lives of my players and I don't want to judge anybody because everyone can do everything.
"A lot of kids are looking at the behaviour of the players so they have more responsibility and they have to know this, but as a manager I don't want to control.
"If my player wants to stay outside, go to bed at 12 o'clock or eight o'clock - I'm not interested."
Ancelotti added: "The private life has to stay the private life - I wouldn't like it if people judged my private life - only one person can judge your private life and I think that is God."
The 51-year-old Chelsea boss, who won the domestic double in his first season in charge, does not envisage an end to his career at Stamford Bridge anytime soon, and says he wants to emulate Sir Alex Ferguson’s impressive tenure at Old Trafford.
"I don't know when I will finish my career," he said.
"When I started my career in 1995 I said five years is enough so my idea was to close my career in 2000.
"Now it is 2010 and I have to say I love this job, I'd love to stay here at Chelsea and I would like to stay here.
"I would be happy to stay as long as (Sir Alex) Ferguson at Manchester United."