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Ancelotti's contract expires in June, but is set to be automatically renewed if PSG finish in the top three of Ligue 1.
With the club currently seven points clear of Marseille at the top of the table, it seems that the Italian is set to remain in the French capital.
Ancelotti has also recently received the public backing of club president Nasser al Khelafi and sports director Leonardo, and has confirmed to French media that he is happy at the club.
"I have decided that I want to stay," Ancelotti said.
"Things are very clear. The work I have been doing will be judged at the end of the season.
"If everybody is happy I will be happy to stay. Then we will be able to extend the adventure here."
Ancelotti looks set to win PSG's first league title since 1994.