PSG boss Ancelotti, who managed Cole for two years at Stamford Bridge, insisted rumours his big-spending side were interested in signing top players was "normal".
Speaking to ESPN STAR Sports, the Italian said: "Ashley Cole is the best left-back in the world at the moment."
England defender Cole is in the final year of his Chelsea contract and there are suggestions he is struggling to reach an agreement over an extension.
There would be no shortage of suitors for the 31-year-old were he to quit the European champions and asked about reports PSG would be one of them, Ancelotti said: "This is normal because a lot of players are linked with Paris Saint-Germain in the market.
"The newspapers said that 100 players could come here.
"For this season, we have a very good squad but next year, I don't know what is going on."
- Ashley Cole
- ESPN STAR Sports