Carletto has been linked with Arsenal, Chelsea and a return to Juventus, having turned down the Italian national team.
“I had a choice and I want to coach a club team,” Ancelotti explained to Milan TV.
“I didn’t want to change my job. It was a difficult decision, but I have to go with what I feel.
“A return to Serie A? I don’t know what will happen in the near future. I could also stay out again, because honestly I don’t see many opportunities to return to coaching.
“It’s no problem, I think something will jump out sooner or later. I would have no problem returning to Italy.
“Roberto Mancini? He’s an excellent Coach. He has international experience and if it’s him the national team would be in good hands.
“He’s motivated, and I’m convinced we can start again.”
Ancelotti has had many duels with Sir Alex Ferguson over the years, but the Manchester United legend is in intensive care after suffered a brain hemorrhage on Friday.
“The whole footballing world is sad for Ferguson, because everyone knows the man he has always been.
“I heard that the operation went very well, so we hope that what comes after goes well too and he can recover.
“He’s a person of the highest level, and that’s why we’re all worried for him.”