With the 31-year-old still to sign a contract extension at Stamford Bridge, with his deal due to run out next summer, the chance to sign a world-class player for next to nothing is tempting for the former Chelsea manager.
"For this season, we have a very good squad but next year, I don't know what is going on. Ashley Cole is the best left-back in the world at the moment," he told reporters.
| CHAMPIONS LEAGUE LATEST
|20/1||PSG are 20/1 to win the 2012-13 Champions League with William Hill|
However, the 53-year-old suggested it is only natural that top players are linked with the French club, such is their spending power and desire for success, and added that not every rumour comes true.
"This is normal because a lot of players are linked with Paris Saint-Germain in the market," he added.
"The newspapers said that 100 players could come here."
Cole has been in excellent form this season for the Blues, but talks over a new contract seem to hinge on Chelsea's policy of only giving players over 30 a contract extension of one year. Cole would be in line for a huge payout if he were to make the move to the Qatari-backed French side, who are currently second in Ligue 1.
Ancelotti also had words for another Chelsea player, lending his support to captain John Terry after the FA found him guilty of using racist language towards Anton Ferdinand.
"It is unbelievable – John Terry doesn't deserve this," he told ESPN Star Sports.
"I cannot understand how the FA can make a different decision [to the civil courts]. I think that it is really strange. [Terry] has a really fantastic relationship with everyone. I am sure he is not racist – 100 per cent."
"I don't think he'll come back to play for England and I think that is a good decision. It is a bad thing for England, for sure, because John Terry did a lot of things for the national team."