The Uruguay captain has vowed to stay put and fight for a first-team spot in Paris following an underwhelming debut season in the French capital
Lugano, 31, joined the Ligue 1 club from Fenerbahce in 2011 but has fallen down Ancelotti's pecking order in defence. However, the Uruguay captain has vowed he will fight for his place in the squad.
"When you are thrown into a new challenge, a new experience, there are always difficulties," Lugano said, according to Neuvo Tiempo.
"I did my best but I was often thwarted with physical niggles and have only been fully fit for about 20 days. PSG relies on me and I want to stay. A bad streak should not cast doubt upon everything."
Lugano made 12 Ligue 1 appearances this season after five successful years in Turkey.