Real Madrid's Italian boss has been discussing the vacant Old Trafford hot seat, amid increased media reports of a possible switch there.
The former Chelsea and Milan manager saw the funny side after being queried on the likelihood of a return to England with English giants Manchester United.
In Real Madrid's pre-match news conference today, ahead of their match with Osasuna tomorrow, the Italian, who has won league titles in France, England and his native country, declared that he was happy to be at the La Liga title chasers.
"I'm really happy here," laughed Ancelotti after prompting from reporters. "I'm lucky to work at the best team in the world."
The former Italian international has taken Real to the cusp of a first Champions League final in 12 years after winning Ligue 1 with PSG last season, with Los Blancos leading Bayern Munich 1-0 ahead of a second leg in Germany.
Despite their impressive European form, Real's league challenge has stuttered in recent weeks, as they have slipped from top spot to third in the league. City rivals Atletico currently lead La Liga, though they face a title deciding final game at Barcelona, where all three teams may still be in with a shout of a title chance. If Atletico lose, and Real win all their remaining games, then Ancelotti will add the Spanish league title to his impressive collection, having already won the Copa del Rey this year.
Such a clean sweep may encourage Ancelotti to reconsider a switch back to England, and he admitted his admiration for the Old Trafford club, despite confirming his current commitment in Spain.
"I respect Man Utd a lot. I was disappointed for David Moyes, but my place at the moment is here."
Ancelotti is the third boss in recent days to play down a possible move to United, with Dortmund boss Jurgen Klopp and Chelsea's Jose Mourinho also ruling out a switch.