Norwich City have rejected Everton's bid of about £20m plus add-ons for central defender Ben Godfrey.
The deal for the 22-year-old would have been worth about £26m with add-ons and talks are continuing between the clubs.
Godfrey is under contract with the Canaries until 2023 with the Carrow Road club having the option of a further year.
Everton are looking to boost their options in defence after injuries to Mason Holgate and Jarrad Branthwaite.
"We are looking for a centre-back because we are short, but at the moment he plays for Norwich," said Ancelotti after Everton's Carabao Cup win over West Ham on Wednesday.