The Ligue 1 giants are set to sit down with the former AC Milan and Chelsea boss with under-fire Antoine Kombouare reportedly on the verge of being sacked.
According to Tuttomercatoweb, French league leaders PSG are likely to meet with Ancelotti just before the end of the year.
It is believed Ancelotti has assured sporting director Leonard he would have no qualms about working under him.
Big-spending PSG sit three points clear atop Ligue 1 after the first half of the campaign, but they did crash out in the group stage of the Europa League.
A 3-0 defeat to rivals Marseille at the end of November also prompted the club's Qatar owners to consider their options.
A statement from the club on Thursday said they had 'started amicable discussions' with Kombouare to resolve their situation.
Ancelotti has not managed since being sacked by Chelsea in May, while former Liverpool and Inter Milan boss Rafael Benitez has also been heavily linked to the job at Parc des Princes.
Italian Ancelotti has reportedly been on the radar of English Premier League side Tottenham, whose manager Harry Redknapp is favourite to succeed Fabio Capello for the England job.
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