Ancelotti, whose current deal ends in June, has a clause in his contract that triggers an automatic renewal if PSG finish in the top three and the Italian said that he is looking forward to extending "the adventure".
"I have decided that I want to stay," Ancelotti told reporters.
"Things are very clear. The work I have been doing will be judged at the end of the season. If everybody is happy I will be happy to stay. Then we will be able to extend the adventure here."
PSG are currently seven points clear at the top of Ligue 1.