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As reported by Goal, outgoing Netherlands coach Louis van Gaal is 'very keen' to take the role although former Chelsea assistant Wilkins believes Ancelotti would be ideal for the position.
"I think Manchester United will go for an experienced manager," he told Sky Sports News.
"David Moyes was the right man last year after his time at Everton, but the name that jumps out at me is Carlo Ancelotti."
Ancelotti is into his first season with Madrid after arriving from French giants Paris Saint-Germain last year.
The 54-year-old is in a three-way battle with Madrid rivals Atletico and defending champions Barcelona for the Liga title and is preparing for a Champions League semi-final against Bayern Munich.
Despite winning the Copa del Rey, a failure to claim further silverware could spell the end of Ancelotti's tenure at the Bernabeu, according to Wilkins.
"The Copa del Rey is not enough for Real Madrid, so if he doesn't win La Liga or the Champions League, he may become available," he said.
"He speaks English, knows the Premier League and I think he would be ideal."