The Italian boss is expected to be sacked soon after Sunday's final game of the season at Everton and claims he would have no problem picking up the pieces from Avram Grant's reign and taking a pay-cut.
Ancelotti said: "I would coach West Ham - why not? It's a challenge to manage a team in the Championship.
"The atmosphere at West Ham is amazing. It doesn't matter if you manage a top team or a smaller team.
"It's more important to work. I was happy to train in the second division when I was learning."