Paris Saint-Germain frontman Mbappe has entered the final six months of his contract at PSG and it is no secret that Madrid wants to bring him to Spain.
The 23-year-old was a target for Los Blancos during the last transfer window but recently ruled out leaving Paris in mid-season.
However, Italian agent Giovanni Branchini claims LaLiga leader Madrid has offered €50 million ($78.5 million) to sign Mbappe now, less than six months after it reportedly offered up to €200 million ($314 million).
It could hire him as a free agent at the end of the campaign should Mbappe refuse new terms in Paris, but getting the France international through the door now would also be a major coup.
Ancelotti was asked about Branchini's comments in Madrid's news conference on Wednesday (AEDT), but elected to sidestep the issue.
"Talking about players who are not here does not seem fair to me," Ancelotti said.
"I have a good relationship with Branchini. I prefer not to comment on this."
Mbappe scored a hat-trick in PSG's 4-0 Coupe de France win over Vannes on Tuesday (AEDT) and has indicated he wants to fight for trophies with Mauricio Pochettino's side this season.
🔥🔥🔥 It was the @KMbappe show in the #CoupeDeFrance today as he netted a superb hat-trick to guide @PSG_inside into the Round of 16, including this banger 💥 Watch ALL the highlights here 👉🏻 https://t.co/OiacJGlSZh | #VannesPSG pic.twitter.com/E3WyFSjB3B— beIN SPORTS (@beINSPORTS_AUS) January 3, 2022
Madrid is looking both short term and long term, and Ancelotti said: "The planning for next season is already done. I would find it unprofessional if a club like Madrid hadn't planned already."
On Thursday (AEDT), Madrid faces Alcoyano at the Copa del Rey Round of 32 stage, a year on from being humiliated by the minnow at the tiny Estadio El Collao in Alcoy.
Madrid's then-coach Zinedine Zidane and his players had to swallow a 2-1 defeat last January against the third-tier team, which snatched an extra-time winner while down to 10 men.
Ancelotti said his preparation for the rematch had not involved watching a video nasty of last year's upset.
"I haven't seen last year's game," Ancelotti said. "I know what happened because the players have told me about it. It's still an open wound.
"The players know better than I what happened and what doesn't have to happen tomorrow."
A 1-0 defeat to Getafe on Monday (AEDT) was a jolt to start the new year for Madrid, and Ancelotti quipped afterwards that it was as though he and his players had taken an extra day of holiday.
But it will be down to business for the cup game.
"We are going to take it seriously. We know the difficulties we may have, and I will put the best team possible together," Ancelotti added.
Gareth Bale will be absent, unwell rather than injured, but Ancelotti said the Wales forward could come into the equation for the LaLiga tussle with Valencia on Sunday (AEDT).