"This information is false," the federation said in a brief statement. "The question (of a new coach) is being dealt with in a transparent manner and the chosen coach will be announced when the time is right."
Ancelotti is currently with Real in Morocco at the Club World Cup, where his team will play Saudi Arabia's Al Hilal in Saturday's final.
The 63-year-old Italian told a press conference on Friday his intention was to see out his contract with Real.
"My situation is pretty clear. I have a contract until 2024," said Ancelotti, who returned for a second spell with Real at the start of last season.
Brazil are looking for a new coach after Tite stepped down following the country's quarter-final loss to Croatia on penalties at the 2022 World Cup.
Former Spain coach Luis Enrique, Manchester City boss Pep Guardiola, Zinedine Zidane and Jose Mourinho have all been regularly cited by Brazilian media as potential successors to Tite.
