The coach says the club do not depend on the midfielder, ruled Gareth Bale out of Sunday's match and stressed the importance of beating Valencia
The former Liverpool midfielder sees his current deal at the Santiago Bernabeu run out in June 2014 and with no new deal guaranteed to be on the way, los Blancos could lose the Spain international in the summer.
Despite his refusal to commit to a new Madrid deal, the Italian coach has no intention of dropping Alonso, though he stressed his team do not in any way depend on him.
"We have no new information from the club on any renewal, but he is our player until the summer of 2014 and, if available, will play," Ancelotti told reporters on Saturday.
"We do not have dependence on Xabi Alonso, as we have important players and we played half so far this season without him [when he was injured] and the results were good, but the quality of Xabi gives us all more confidence."
Gareth Bale picked up an injury during training this week and after missing Saturday morning's training the Welsh winger has been ruled out of Sunday's clash with Valencia.
"Bale's injury is not as major, but he will not play tomorrow," the former AC Milan and Paris Saint-Germain boss said, confirming reports early on Saturday from Spain.
Ancelotti also stressed the importance of beating Valencia - who sacked coach Miroslav Djukic during the week - at Mestalla in what will be Madrid's final game of the year before the winter break.
"This is a very important game," he continued. "This is the last game of the year against a team who have had a coaching change, so they will be motivated and focused.
"We want to finish the year well with a good performance and getting three points."