Brazil's friendly matches against France and Croatia on March 26th and 31st will not include their top scorer Neymar as he misses out on the squad, hurting his chances of featuring at the World Cup this summer.
While the winger remains desperate to lead his country to a sixth world title, he is injury prone and Ancelotti revealed he is cautious about including him.
"Neymar is not at 100 percent of his capability. If he can be at 100 percent physically, he can be there. Neymar could be at the World Cup. Neymar has to keep working, playing, showcasing his qualities and maintaining good physical condition."
Speaking on the snub, Neymar revealed he is upset but will support the side even if he does not get a call from Ancelotti in the next few months.
"I'm going to speak out here, because I can't just let this pass," he said.
"Obviously I'm upset and sad not to have been selected. But the focus remains the same, day after day, training session after training session, match after match.
"We'll achieve our goal. There's still one final squad announcement to go and the dream lives on. That's it, we're in this together."
Brazil begin their World Cup campaign against Morocco before facing Scotland and Haiti in Group C. Neymar is unlikely to feature unless members of the first team pick up injuries which would open the door for him.