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However, according to AS, Milan could face competition from Ancelotti's Madrid after the 62-year-old reportedly recommended the signing of the Red Devils outcast to the Galacticos board.
United boss Ole Gunnar Solskjaer, meanwhile, is believed to want Dalot as a solid back-up option to Aaron Wan-Bissaka next season, if the club fails to pull off a deal for Atletico Madrid ace Kieran Trippier.
During Ancelotti's time at Everton, it is claimed that the Italian was keen on bringing the 22-year-old to Goodison Park, either on loan or on a permanent basis.
Dalot was given a late call-up into the Portugal squad for this summer's European Championships, with the contest likely to have enhanced his reputation further with the managerial veteran.
Intriguingly, Madrid could opt to raise their interest in Dalot during talks and the Portuguese full-back could, potentially, be used as leverage to lower the asking price for Varane.
Featured Image Credit: PA
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