The Italian manager has long been touted as a replacement for Jose Mourinho, who left the club for Chelsea at the season's end. Isco, meanwhile, has Manchester City and his former Malaga boss Manuel Pellegrini on his tail, but according to Perez, Real Madrid is expected to fight off competition from the Premier League outfit to sign the Spain international.
"Now nothing has been signed," Perez told 20Minutos about Ancelotti. "PSG could announce an agreement tomorrow, which would allow him to join Madrid. We hope that everything turns out well. My coach is Ancelotti.
"The signing depends on Paris Saint-Germain reaching an agreement with Ancelotti and announce their new coach, [Laurent] Blanc."
On the signing of Isco, who is fresh off helping Spain to an Under-21 European championship, Perez said: "He has a big chance to be a Real Madrid player, because he wants to go to Madrid and Madrid want him too.
"Isco is one of Spain's best players, and the coaching team believe he's good enough to play for Madrid. I know he's excited to come. It's the same with me.
"If all goes well, we can announce his signing soon. Always after annoucning the coach."