The 58-year-old has been out of work since being sacked by German giants Bayern Munich last month and intends to take the rest of the season off.
Ancelotti may be attracted by the prospect of managing his home nation, however, having spent the past 23 years of his coaching career in club football.
According to Spanish publication Marca, the former AC Milan and Chelsea chief is now seen as the big favourite to take over from Ventura, who is expected to either stand down or be axed in the next 48 hours.
Italy lost 1-0 on aggregate to Sweden in their World Cup qualifying playoff, meaning that they will not be at the quadrennial tournament for the first time in 60 years.
Legendary goalkeeper Gianluigi Buffon has already announced his international retirement in the wake of that defeat, while Daniele de Rossi, Giorgio Chiellini and Andrea Barzagli all quickly followed.