Vincenzo Montella confirmed on Monday that the signing of a midfielder was a priority for Milan, amidst mounting speculation the player in question would be Sanches.
"There is no way".
While remaining fairly vague on Sanches' future, Ancelotti offered a defiant response when asked whether Chile star Arturo Vidal would still be at Bayern next season.
Sanches arrived in Bavaria last summer from Benfica with weighty expectations on his young shoulders, having played a starring role as Portugal lifted the Euro 2016 trophy.
"I know there are rumours - Vidal will stay with us, 100 per cent", the Italian said in a press conference ahead of facing English champions Chelsea at International Champions Cup.
United have held a long-term interest in the dynamic player, who has previously admitted he almost moved to Old Trafford before switching to Der FCB, per Harvey. "The promoter of the tour wanted it that way, and we gave in, but I doubt that's set in stone for all times". He is also very good at creating chances and his passion for the game can be seen clearly when he steps on the pitch.
Bayern meanwhile have suffered two defeats in pre-season after Arsenal won a penalty shootout in Beijing and Milan romped to a 4-0 victory in Shenzen. "We have to make a decision".
On Tuesday, they tackle Chelsea in Singapore and Ancelotti has tipped his former club to make a strong impression in the Champions League as they return after claiming their domestic crown.
'They will be competitive [in the Champions League],' he said. Good signings and the team is a better than a year ago.
'Can they win it?