Current head coach Maurizio Sarri is now expected to leave the club over the next few weeks, with the Italian manager reportedly having a release clause of €8m valid in his contract until the end of the month.
Premier League Chelsea are among those rumoured to be interested in the Napoli boss, who so nearly masterminded the club's first Scudetto since 1990, while a move to Zenit St Petersburg to replace another Italian in Roberto Mancini is also thought to be a possibility.
Italian newspaper Corriere dello Sport (via Football Italia) have reported that Napoli have agreed a deal to replace Sarri.
Ancelotti is believed to have been on Napoli's radar, and the report claims that the 58-year-old has already agreed to join the club.
Ancelotti was in Italy for Andrea Pirlo’s farewell game on Monday night, and it believed that the former Chelsea boss also paid a visit to Napoli president Aurelio De Laurentiis to negotiate a contract. Now a deal has reportedly been agreed, and the only thing that could stop Ancelotti from taking over at Stadio San Paolo would be if Sarri were to stay with the club.
Italian journalist Ivan Zazzaroni expressed his surprise at the situation but insisted that he believes it is true, as he wrote: "I still can’t believe it, but over many years this source has never given me wrong information.”
Ancelotti has been out of a job since September, when his was sacked as manager of Bayern Munich.
The Italian manager is believed to have been eyeing a return to the Premier League this summer, with the Arsenal job a tempting prospect for him, but he also is thought to see a return to his homeland is an exciting opportunity.