The 20-year-old striker will spend the campaign with the French club and has made an impressive start, after scoring four times in as many games since joining PSG earlier this month.
Everton would not agree to the inclusion of an option to buy, in the terms of Kean's loan, and Ancelotti has confirmed he will return to the club in July because "this is what the contract says".
“I didn't speak with him but I saw him score four goals in two games," he said.
"This is good. This is good for Paris Saint Germain, for him and for us also."
Asked if he expected Kean to return to Everton after his loan was finished, the Blues boss said: “This is what the contract says.
"We decided to allow him to go on loan, to play more, to have more opportunity to play more. He is showing his quality and he will be back next season."