Beckham arrived in France amid much fanfare in January, signing a deal which is due to run until the end of the season.
He is now 37 years of age and has spent much of the last five years away from Europe in the American MLS.
The former England captain has, however, not looked out of place at a club pushing hard for the Ligue 1 title and readying themselves for a UEFA Champions League quarter-final.
Ancelotti sees no reason why Beckham could not play on past the end of the current campaign, and hopes he can be convinced to prolong his stay in the French capital.
He said: "I would really like Beckham to extend his contract but, once again, it's a decision the player has to take in agreement with the club. But I'm in favour of it."
Beckham has faced criticism from some quarters for heading to China during the recent international break as part of an ambassadorial role, but Ancelotti claims the veteran midfielder headed to the Far East with PSG's blessing.
He added: "If he went to China, it's because everyone agreed that he could go. There's no problem. Not for me, not for the club, not for the players. I also agreed.
"I didn't understand that debate provoked by his trip. He had commitments before signing for PSG. Some had a holiday, he went to China."