Ancelotti says he still has work to do at Madrid, however, and believes he will be in charge this time next season.
"I still haven't spoken to the club about my future and the club haven't spoken to me," he told reporters at a press conference on Friday. "I'm still thinking I'm going to be the coach of Real Madrid until I'm told otherwise.
"After the game on Sunday or Monday, we'll have a meeting and we'll discuss my own future and the club's future. The club have told me that at the end of the season we will meet.
"I know this is a tough moment for the club, they have to make a decision, but I haven't seen any deterioration in relationship in the past two years with president Florentino Perez.
"If the club wants to change coach, I will accept that, it's fine by me. If I go, I've had two great years. Hopefully I stay, though, I want to stay.
"My feeling is that I'll be here next season. The club are evaluating things, that's normal, but I want to stay here. I like it here. I like this club, I like my players, I like this city."
Reports in Spain on Friday suggested Ancelotti may yet survive the axe but his backroom staff will be culled on the insistence of the board. The former Chelsea and Paris Saint-Germain boss is adamant, however, that an overhaul is not required.
"If I stay, only small things need to change, there doesn't need to be an overhaul," he added. "My philosophy and my style of work… I still believe in it.
"I arrived here as Real Madrid coach, bringing the staff I think are at the top level. I still think that. I have a lot of confidence in the people I brought with me. What I've achieved in my career I've achieved with the staff I have. I think they're the best in the world.
"It's like being on holiday all the time living in Madrid. It's great here. I have no rush to leave and go on holiday but, once everything is decided with my future, I will go on holiday!"