Roberto Mancini's side have opened initial talks with the forward's representative over a summer switch but the Paris Saint-Germain boss insists the Swede will remain in France
Goal.com exclusively revealed in April that City's director of football Txiki Begiristain has opened initial negotiations with Ibrahimovic's agent, Mino Raiola, over a potential move at the end of the season.
But Ancelotti is adamant the 31-year-old forward, who has 32 goals in his first season in France, will remain with the Ligue 1 leaders beyond the current campaign.
"Many teams would like to have Zlatan, but it's PSG's luck that he plays here and is doing a fine job," Ancelotti told Sky Sport 24.
"He will still be with PSG next year, as will [Marco] Verratti."