Speculation in the Spanish media this week has suggested the European champions will make a move for Cruzeiro midfielder Lucas Silva, while Sami Khedira continues to be linked with an exit.
However, Ancelotti declared himself content with the make-up of his squad and does not foresee the Liga leaders making any changes when the the transfer window opens next month.
"We will not be making any signings in January," Ancelotti said ahead of Real's La Liga clash with Celta Vigo on Saturday.
"I'm happy with my squad. No Real Madrid players will be sold in January. Sami Khedira has had bad luck with injuries, we've also recovered Jese Rodriguez [from a long layoff]."
Ancelotti, who confirmed that Asier Illarramendi will deputise in midfield for the suspended Isco, has seen his side rack up a club-record 17 straight victories in what has been a superb season thus far for Real.
Despite their impressive form, which has seen Real score 48 goals on their way to 33 points from 13 Liga matches, Ancelotti believes there is always room for improvement.
"Can we improve? Well every team can improve, we don't need to put limits on this team," he added.
"We are a big family and we all respect each other. I have a great relationship with the players. Personally I'm working hard to keep this good moment going."
Ancelotti also spoke of the threat posed by Celta and feels the support of the Bernabeu crowd could be vital.
"Celta's results speak for themselves. They are going to make it an intense game so we have to be at our highest level," he continued.
"We can feel the good atmosphere everywhere, on the street, in the stadium. The Bernabeu definitely helps us."
