Real rejected an offer from Arsenal to take academy product Morata on loan last January, but Ancelotti has explained that the striker, who made just three league starts last season, is keen to find another club in pursuit of first team football.
"The player has decided to leave in search of more minutes and the club has agreed it," said the Italian coach at the presentation of his new website.
In addition to the Gunners, Italian champions Juventus and Bundesliga side Wolfsburg are believed to be chasing Morata, but Real Madrid are keen to include a buy-back clause in any potential deal.
Ancelotti appeared to confirm this by saying: "If he gets the chance to play it will be good for him to have those opportunities for a year."
And he admitted Real would search for a "young striker with the same profile as Morata" in the event the 21-year-old ups sticks from the Spanish capital.
However, Ancelotti gave away few hints about Madrid's interest in Liverpool striker Suarez.
"It is difficult to improve what we have in attack," he said, in reference to Madrid's front three of Cristiano Ronaldo, Gareth Bale and Karim Benzema, who scored a combined 101 goals in all competitions last season.
"Suarez is a fantastic player but it would be a lack of respect to talk about signings at this stage."
Ancelotti added that club captain Iker Casillas will stay at Madrid next season despite playing second fiddle to Diego Lopez in league matches, and revealed that Real would not sign any players until the World Cup was over.
Angel Di Maria has insinuated that he expects to be sold this summer, but Ancelotti sought to reassure the Argentine midfielder that he is in his plans for next season.
"I think that Di Maria knows very well that everyone loves him," he said.
"The coach, the club and the fans love him. I don't think he has any doubt about that."