The 33-year-old returned to Santos in January, hoping to regain some form and fitness ahead of the 2026 World Cup.
Neymar’s homecoming hasn’t quite gone as planned, however, as he continues to be plagued with injury, with Santos sat just about the relegation zone.
Ancelotti hasn’t called Neymar up for any of his Brazil squads since taking over at the start of the summer, though he hasn’t ruled out bringing him back entirely.
Ancelotti told reporters: "Neymar can play at his highest level in this team without any problems. When he is in good physical condition, he has the quality to play not only in Brazil but in any team in the world because of his talent."
He added: "Brazilian players have the quality to play beautiful football but you have to think about what you mean by beautiful football.
“Brazilian players have individual quality but that is combined with teamwork and movement off the ball, and that's very important in football.
"My goal is to give my best for the Brazil national team, to try to get them to perform at their best and to win the World Cup.
“Of course, no foreign-born coach has ever won the World Cup but there is always a first time in life."