Julian Nagelsmann has received the backing of Lothar Matthaus, ahead of Thomas Tuchel to replace sacked Ancelotti.
Bayern Munich sacked Ancelotti midweek, following their 3-0 UCL loss to PSG and installed Willy Sagnol as caretaker manager.
Former Dortmund boss Tuchel has been linked with managing the Bavarians, with Hoffenheim manager, Nagelsmann leading the race to take over from Ancelotti.
“I believe that Nagelsmann is at the top,” Matthaus told Sky.
“He is the top candidate and the long-term solution. There will be contact between Bayern and Hoffenheim, and Bayern will want their number one target.
“Until this happens though, you have to find a transitional solution.
“That’s why I do not think Thomas Tuchel will be coach at Bayern. That would be a long-term solution again.”