Ancelotti has said Real Madrid are in talks with Arsenal over Alex Sandros’ signing, the Gunners announced on Wednesday.
Sandro, 26, has signed a three-year contract worth €16m (£13m) with the Portuguese champions, who are also expected to make an offer for Bayern Munich’s 22-year-old midfielder Thomas Muller.
“We are negotiating with Arsenal regarding the signing of Alex Sandrros,” Real Madrid president Florentino Perez said in a statement.
“The signing of Sandros, who has played for Real Madrid since January 2018, is an important addition to our squad.”
Real Madrid will face off against Olympiakos on Sunday in the first leg of their Champions League semi-final second leg.