An FA independent regulatory commission found Terry guilty of racially abusing Queens Park Rangers defender Anton Ferdinand, despite the 32-year-old having been cleared of a similar charge in court earlier this summer.
Ancelotti, who managed Terry during his two-year Stamford Bridge tenure, has revealed his disagreement with the FA's decision, insisting that the former England skipper is not a racist.
"It is unbelievable - John Terry doesn't deserve this," Ancelotti told EPSN Star.
"I cannot understand how the FA can make a different decision. I think that it is really strange.
"He has a really fantastic relationship with everyone. I am sure he is not racist - 100%."