The Daily Mail says the terms of a three-year deal with Chelsea have already been discussed.
The Milan boss's lack of English has concerned some Stamford Bridge officials but Abramovich wanted Ancelotti before he eventually turned to Luiz Felipe Scolari last summer and this time he is determined to get his man.
Last year Ancelotti confirmed that an approach had been made to him prior to Scolari's appointment, but that he had opted to stay at Milan. Since then, however, the situation at Milan has changed.
His employers were prepared to sell Brazilian superstar Kaka to Manchester City three months ago in a world record £100million deal and yesterday Real Madrid president Florentino Perez vowed to lure the Brazilian to the Bernabeu this summer if he is re-elected.
Milan's apparent lack of ambition and the power and influence of the Barclays Premier League now look like being enough to change Ancelotti's mind, giving club owner Abramovich the manager he wanted all along.