With Gunners boss Arsene Wenger under pressure following a poor start to the season, the 52-year-old Italian admits he would be keen on the job although he would also consider applying at Tottenham or Liverpool too.
"I have a strong will to remain in England," Ancelotti told Italian newspaper La Repubblica.
"For a coach, this is the ideal country.
"But I would only consider top clubs, including Tottenham and Liverpool.
"It's evident that Wenger's bench is wobbling and that in several months' time, an English coach will be appointed to replace (England manager Fabio) Capello in the national team, which will free up a place in a club."
Capello is under contract with England until the Euro 2012 tournament and the Football Association have said they will only consider an English replacement.
Returning to guide a Premier League club would grant Ancelotti the opportunity once again to go head to head with Manchester United manager Sir Alex Ferguson - for whom he has great respect.
"As time goes on, the more I fall in love with Ferguson," Ancelotti said. "As a coach, he is unusual.
"It's not as if he guides the training sessions because he delegates a lot and has an excellent staff.
"But he understands football like few do.
"With him, all the players improve.
"He has no fear of introducing youngsters.
"United play a European style of football, a modern style.
"But above all, Ferguson is a great person and he is humble."
Ancelotti has been out of a job since being dismissed by Chelsea in May after two seasons at the helm.
He was linked this summer with a move to Roma but he is happy to play the waiting game.
"I am in no hurry, I promise," he said. "The fact that I'm not coaching does not cause me anguish.
"In fact, I am enjoying life."