Almost every national newspaper reports that Ancelotti believes he will remain at the club until the end of the season, but will be dismissed after what is almost certain to be a trophyless season at Chelsea.
Chelsea's Champions League quarter-final against Manchester United was seen as Ancelotti's last chance of winning silverware this season, but after their departure from the competition, it seems journalists have been brief by a senior club source that Ancelotti's time is at an end.
Attention has already turned to his replacement, with several candidates offered up by the morning papers. Both The Daily Mirror and The Daily Express suggest a return for Jose Mourinho, with the former claiming a delegation of senior players have asked Roman Abramovich to bury his differences with the Real Madrid coach and bring him back to London.
Mourinho has repeatedly stated that he wants to return to England - and more specifically London - and The Mirror claims that the players would like Guus Hiddink to be installed as a director of football, and act as a buffer zone between Mourinho and Abramovich.
The Times mentions the possibility of Hiddink returning as head coach, while also suggesting young Porto boss Andre Villas-Boas, former player Didier Deschamps and current Zenit St Petersburg top man Luciano Spaletti.
The Daily Mail and The Daily Telegraph also nominate Hiddink, while the Telegraph also suggests Rafa Benitez, who has been angling for a job back in England ever since leaving Inter Milan.
If nothing else, Benitez fits the bill of a coach who can get the best out of an English team in Europe, but the appointment of a coach with a reputation for playing cautious football would be a significant gamble.
Another candidate mentioned in a number of places is Marco van Basten, currently out of work after a disappointing season with Ajax in 2009.
Finally, Marcello Lippi is another name in the frame, perhaps if only because he stated in a radio interview this week that he would be open to a move to England, and to Chelsea.
