It was reported on Tuesday that the mega-rich French club were planning an £8 million bid for Terry after impressing for England during Euro 2012 last month in Poland and Ukraine.
The 31-year-old worse the captains armband during Ancelotti’s two-year tenure at Stamford Bridge winning a league and FA Cup double in 2010 before his dismissal 12-months ago.
After seeing a £45m move for AC Milan defender Thiago Silva fall through it was thought the Italian would move for Terry to spearhead his challenge for the Ligue 1 title.
But Ancelotti has insisted he has no plans to make a move for the Blues stalwart who lifted the Champions League trophy in May.
“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.”
Speculation has also gathered that Chelsea are lining up a shock swoop for Theo Walcott as he continues to stall on a new contract at Arsenal.
The 23-year-old has a year left on his current deal at the Emirates Stadium which has alerted the West London club although PSG will rival them for his signature.
Roberto Di Matteo was impressed by Walcott’s impact for England at the European Championships despite playing a bit-part role from the substitutes bench.
Signing a speedy right sided attacker is one of Di Matteo’s main priorities in the transfer window and has also looked at Wigan’s Victor Moses but isn’t prepared to the pay the £12m asking price set by chairman Dave Whelan.