Rumours of the appointment emerged when the former Chelsea boss was spotted with the governing body's sub-commissioner Alessandro Costacurta at a hotel in Rome.
Costacurta, however, has since clarified that it was merely a chance meeting during which the possibility of Ancelotti coaching Italy was not formally discussed.
"Carlo was in Rome for personal reasons," he told Sky Sports News. "I always stay in that hotel and we found each other there. We did not talk about the job, we only joked about the opportunity. You have to talk about many things, the program and finances, but we could not talk about them.
"Since we are loyal to the rules, we talked about something else. It is true, there is a vision that could see Carlo, like others, on the bench of the national team, but the rules are important and we must follow them. The deadline is May 20 and you know I wouldn't go against the rules. Unfortunately we spoke about something else."
Costacurta went on to say that official talks with Ancelotti about the Italy job will likely be held in the future.