The Gunners want Ancelotti should their current manager leave.
AS Monaco are hoping to re-sign Arsene Wenger as manager next summer and should that happen Arsenal have lined up current Real Madrid head coach Carlo Ancelotti as his replacement, according to the Daily Express.
Wenger previously managed Monaco for seven years between 1987 and 1994, winning the Ligue 1 title during his first season in charge and later adding the Coupe de France to his honours in 1991.
The Frenchman then had a short spell in Japan with Nagoya Grampus before taking charge at the Gunners in 1996, where the 65-year-old has remained ever since and has enjoyed a successful stint.
However, Monaco are hoping to tempt Wenger away from the Emirates Stadium with the lure of a colossal three-year contract worth £28m, funded by Russian billionaire owner Dmitry Rybolovlev.
The North Londoners are worried that their current boss could be convinced to pack his bags and leave the English capital and are eyeing up Ancelotti as a replacement should that happen.
The former AC Milan, Chelsea and Paris Saint-Germain man is contracted with Madrid until the summer of 2016, but there are reports that the 55-year-old will have his deal terminated at the end of this season should he fail to deliver another major trophy to the Estadio Santiago Bernabeu.