Everton chief Marcel Brands is keen on Jack Grealish - though the Aston Villa captain isn't a priority.
Sky Sports says Brands feels he needs to invest in a number of other positions before a move for the Aston Villa midfielder could be considered.
Brands needs a right winger or right sided attacking midfielder and feels Grealish is not the player to fill that role.
That role could be filled by Gremio attacker Everton Soares.
Ancelotti remains a big fan of Soares, who he first tracked when manager of Napoli. Other clubs, including Napoli remain interested.
Ancelotti was impressed with the 23-year old's performance in last summer's Copa America and hopes to form a potent partnership with Soares' Brazilian international partner and good friend, Richarlison
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