The Premier League champions were linked with a move for the Portuguese international over the summer, and came close to securing his signature before the passing of the deadline thwarted their hopes.
David Moyes has since kept a close eye on the attack-minded defender, with securing a replacement for the soon to be out of contract Patrive Evra a priority.
However, Coentrao looks set to be beyond their reach once again after Ancelotti said that he is not planning any business this month, and that he is happy with his entire squad:
“No one is leaving and no one is coming in. We have a good squad. We don’t need anything.”
This news will come as a blow for Moyes, who was rumoured to be ready to table a fresh loan offer for Coentrao.
Arsenal and Liverpool may also be hindered by Ancelotti’s stance, with both clubs said to be chasing a temporary deal for young striker Alvaro Morata.