Ancelotti: Morata is staying
The 21-year-old has made just a single La Liga start this season but, with Karim Benzema the only other recognized center forward available to Ancelotti, the Italian is keen to retain Morata.
Ancelotti said: "He doesn't lack anything, his only problem is the competition for places. This is Real Madrid.
"I have not spoken with him and there is nothing to speak about. No one has asked for him and, if a team did come in for him, the answer would be a clear no. He is staying."
Morata had earlier stressed he was not interested in leaving anyway, saying: "Real Madrid have been my team since I was little and will be all my life. Moving up to the first team is tricky.
"In football, it's very difficult to stay at the top and even more so in a team like Real."