The 54-year-old is reportedly keen on making the former Italy captain part of his backroom staff having officially taken the reins with the Liga giants on Tuesday
The World Cup winner enjoyed a three-year spell in Madrid as a player and Cannavaro's agent Enrico Fedele, claims the 54-year-old has already enquired about his client's availability to accept a position on his backroom staff.
"There have been some telephone conversations," Fedele told Radio Kiss Kiss. "But I am not aware of any future decisions.
"Fabio wants to coach and get some experience behind a charismatic coach who knows how to handle a large squad.
The 39-year-old, who spent two years playing under Ancelotti during their time at Parma, called time on his illustrious playing-career in July 2011 following a series of recurring knee injuries.