Italy are seeking a new permanent boss after sacking Gian Piero Ventura for his failure to qualify for this summer's World Cup.
Three-time Champions League winning coach Ancelotti has been out of work since being sacked by Bayern Munich last September and has hinted he would relish a return to England's top division, after he led Chelsea to a Premier League and FA Cup double in 2010.
It will now be interesting to see what decision Ancelotti makes, but if Arsenal want to prize the Italian over to the Emirates they are going to have to act fast.
It is believed Ancelotti has been offered a two-year contract with the national side, although the 58-year-old is yet to agree to the deal which is likely to be less lucrative than his previous contract at Bayern.
Fabbricini had earlier stressed that the meeting was not an official discussion, even though the Italian federation does consider Ancelotti a candidate. We did not talk about the job, we only joked about the opportunity. Now he has gone back to Canada (where he is currently living) and we agreed to talk again before for the end of April.
Costacurta says they did speak with Ancelotti but claims it was purely coincidence that they were in the same hotel at the same time.
"The deadline is May 20 and you know I wouldn't go against the rules".
Roberto Mancini had been the odds-on favourite in the Next Italy Manager Market, while Antonio Conte, Max Allegri and Maurizio Sarri had all been linked with the job, however it's Ancelotti who has been identified as their No.1 target.