The England man was skipper under Ancelotti during his time in charge at the west London club between 2009 and 2011 and who won a league and FA Cup double at the Bridge in 2010.
But the Italian manager says he has no plans to reunite with the 31-year-old defender who lifted the Champions League trophy in May to spearhead his challenge for the French title.
"We are looking for a central defender. The club is in contact with some players, but not John Terry," Ancelotti said.
"Last year, we ranked second. This year, we clearly want to be champions. There's also the Champions League, which will be as important as Ligue 1. But I think it will be easier to win the league."