The FA have indicated that they would prefer an Englishman in charge when Capello steps down after the European Championships in 2012.
But Chelsea's Italian boss Ancelotti said: "It could be English, it could be a foreign manager, it is the decision of FA. I don't think it has to be necessarily English. There are a lot of coaches with good qualities, not just English.
"For a long time the England team has had a foreign manager, they were unlucky also. (Sven-Goran) Eriksson was not lucky."