The Real Madrid coach says the AC Milan striker's volatile temperament is detrimental to his performances and can't be relied upon to lead the Italy attack.
The AC Milan striker looks set to lead the line at this year's World Cup for Italy, which has major concerns over attacker Giuseppe Rossi after scans revealed there could be damage to his already-weakened knee following a challenge from Livorno defender Leandro Rinaudo.
However, Ancelotti believes the Azzurri cannot rely on the 23-year-old to lead from the front in Brazil.
“Italy’s real problem is in attack, where they do not have any top players. We are waiting for Balotelli, but Balotelli is simply not consistent," he told Spanish radio station RNE. “He is a great talent, but he can’t be relied upon and can leave you down to 10 men at any moment.”
The Madrid boss gave his thoughts on Italy's chances at Brazil 2014 and where the strength lies in the team.
"At the moment Italy are just behind Spain, Brazil, Argentina and Germany," he continued. "Cesare Prandelli is trying to bring down the age of the squad, but his strength remains in the great midfield experience of Andrea Pirlo, Daniele De Rossi and Thiago Motta."
Italy opens up its World Cup campaign with a clash against England on June 14.