'Sky Italy' reports that the Italian FA quickly identified the 58-year-old, who has been out of work since being sacked by Bayern Munich earlier this season, as their No 1 target and have discussed the job with him.
Ancelotti is thought to be open to taking the job, though he is very much keeping his options open at this moment in time.
Ventura was sacked earlier this week following Italy's 1-0 World Cup play-off aggregate loss to Sweden, which saw the 'Azzurri' miss out on the World Cup for the first time since 1958.
Ancelotti is a vastly experienced boss, having taken charge of eight clubs during his 22-year managerial career, but he is yet to dip his toe into the pool of international management.
There is thought to be stiff competition for the job, with Chelsea's Antonio Conte, Juventus' Massimiliano Allegri and Zenit's Roberto Mancini all in the Italian FA's thinking.
Whoever should take the job could be in for a baptism of fire, with a demoralised Italy set to face England and Argentina next up in March.