The attacker has been linked with a winter move to the Premier League, but his current club are determined to keep him at the Santiago Bernabeu
The 21-year-old recently suggested that he could leave Madrid in order to get regular first-team action elsewhere, but Ancelotti has stressed that Morata is going nowhere and has urged the youngster to remain patient.
"I haven't spoken to him about a transfer," the Madrid coach stated at a press conference.
"There hasn't been any enquiries about him but, if any club comes along to ask us about his situation, the answer is simple and clear: he's not for sale, he's not going anywhere.
"He doesn't lack anything. It's only a question of stiff competition for a place in the side. That's how it is at Real Madrid."
Morata, who has netted twice in 10 La Liga appearances so far this season, has a contract with the Blancos until the summer of 2015.