Ancelotti plays down link with Italy job

Cesare Prandelli is expected to return to club level after Italy's 2014 FIFA World Cup campaign comes to an end.

Several coaches have been linked to the position, but Ancelotti said he was enjoying being in charge 'on a daily basis'.

"You never know what will happen, but right now I like coaching on a daily basis," Ancelotti told Sky Sport Italia.

"My heir? There are a lot of good coaches around right now, but personally speaking I do like Vincenzo Montella.

"I like how his Fiorentina side play and I like how he deals with the media."

Ancelotti could also return to Milan, where Massimiliano Allegri is under increasing pressure and may not be offered a new deal in June.

The 54-year-old said he would never turn down a potential move to the club he played at and led to Serie A and UEFA Champions League glory as a coach.

"A return to Milan? Why not?" Ancelotti said.

"I'd always say yes to Milan."

Ancelotti dismissed suggestions Xabi Alonso could be on his way out of Real Madrid, with Juventus reportedly interested.

"No, he's happy with us and is too important for Real Madrid," he said.