Ancelotti, who won the 2003 and 2007 European Cups with AC Milan, was sacked by Chelsea at the end of last term after going trophyless only a year after winning a Premier League and FA Cup double in his debut season.
"In a few months Capello's job will go to an Englishman that will free up a spot at a club. Only big jobs interest me like Liverpool and Tottenham. But I'm not in a rush," the Italian told La Repubblica newspaper on Monday.
"I still have a very strong desire to stay in England. For a coach, it is the ideal country. In Italy it is difficult to get full intensity during a training week, in England it is the opposite. It is difficult to reduce it."
Tottenham's Redknapp is the bookmakers' favourite to replace Capello.
Ancelotti also said Arsenal coach Arsene Wenger's job could be in jeopardy given their poor start to the season while he reiterated long held wishes to one day manage Italy, favourite former club AS Roma and Ivory Coast.
In a long interview which included references to Italian cheese rivalries, wine and his calmness when confronted by a bear on holiday in Canada, Ancelotti also said his time in England made him warm to Manchester United boss Sir Alex Ferguson.
"He is a great person, he is humble, he is part of the history of football but he doen't show it," he said.
Get the best features, fun and footballing frolics straight to your inbox every week.
Thank you for signing up to Four Four Two. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.