The World Cup winner and 2006 FIFA World Player of the Year enjoyed a three-year spell in Madrid as a player, and Cannavaro's agent Enrico Fedele, claims Ancelotti has already inquired about his client's availability to accept a position on his backroom staff.
"There have been some telephone conversations," Fedele told Radio Kiss Kiss. "But I am not aware of any future decisions.
"Fabio wants to coach and get some experience behind a charismatic coach who knows how to handle a large squad."
The 39-year-old Cannavaro, who spent two years playing under Ancelotti during their time at Parma, called time on his illustrious playing-career in July 2011 following a series of recurring knee injuries.