Los Blancos are experiencing an injury crisis in defense, which has derailed their season so far.
Ancelotti was asked if they are targeting Liverpool right-back Trent Alexander-Arnold this month or as a free agent in the summer.
Ancelotti told a press conference on Thursday: "It is difficult for me to talk about that in this context. But we are going to have to wait and see.
"We are focused on all these games in January and the game tomorrow (against Valencia) and I've got nothing more to say. It's not sensible for me to speak about the market right now.
"I'm not going to speak about it because right now, here, is not the place to talk about it.
"We will see what will happen but I have a great squad. We have got injuries and problems with that but we are also able to overcome them."