A report in Saturday's edition of La Gazzetta dello Sport claimed that the former Brazil midfielder could return to Inter in the same capacity as his current position with the French giants.
However, the coach refused to comment on the press rumors, instead urging his team to forget its Champions League exploits against Valencia and concentrate on avoid coming unstuck against Nancy.
"We're trying to change the focus from Leonardo," said Ancelotti at a press conference ahead of the Ligue 1 clash.
"The game comes at a very important time for us, only three days after the match against Valencia. It will not be easy to play in, especially from a physical aspect.We've lost a lot of points before and after Champions League matches in the past because they are very intense, especially for those who are not used to it."
The Parisiens reached the quarterfinal stage of Europe's elite club competition for the first time since 1995 on Wednesday, and Ancelotti reveled in describing their rapid progression to the last eight as "not a normal occurrence".
"The Champions League, for those who do not have much experience, requires a lot of physical and mental energy. It is not a normal occurrence to be in the quarter-finals of such a tournament," the 53-year-old explained. "It is not normal for a new team with not much past experience to be in the quarter-finals of the Champions League."
Ancelotti added, "There are many teams that need five or six years just to reach the quarters."