The Sun says the AC Milan coach is being promised a big-name signing worth up to £30million by Roman Abramovich if he joins as boss this summer.
Chelsea's owner has even vowed to dip into his own pocket to pay for the transfer - something he hasn't done for two years.
And Aston Villa winger Young is top of his shopping list.
Ancelotti wants an attacking star with real pace to add a different dimension to Chelsea's play.
Villa paid Watford £9.65million for the 23-year-old two years ago and will demand double that to sell the England man.