Ancelotti is keen to remain in English football, but dropping down into the second tier would come as a major surprise.
When asked if he would take the Upton Park job, he responded: "Why not? The atmosphere is fantastic also in the Championship. The stadia are full.
"If you watch a game in Italy in the second division, maybe there will be in the stadium 2,000 people. It's totally different. It doesn't matter if you can manage a top team or a smaller team. For me, it's important to work.
"I started to train in the (Italian) second division and I was happy in the second division."
Ancelotti's comments continue to suggest he is on his way out of Stamford Bridge. He added: "I have to say thanks to my players, to every one. Because, more or less, they did their best every time. I have to shake their hand, to say thanks.