Modric only has a contract with Los Blancos until the end of June, and it is widely thought that the 38-year-old will end his long association with the capital giants this summer.
The Croatia international has again been a regular for Real Madrid this season, making 33 appearances in all competitions, scoring twice and registering six assists in the process.
However, he has started just 12 times in La Liga this term, being forced to accept a reduced role due to the competition for spots in the middle of the midfield.
Modric is believed to have interest from Saudi Arabia, but Ancelotti refused to discuss the midfielder's future while addressing the media ahead of Sunday's clash with Athletic Bilbao.
«Everyone is talking about the next season except us. Luka is in this season. The future of the individual and the club, we are going to make the decisions when the season ends because we have time to do so,» Ancelotti told reporters at his press conference.
«I don't think anyone is interested now in talking about his future.
»The feeling I have is that I see Modric very well, ready to fight at the beginning of the season. We plan to finish the season well. This month is very important and we are in an optimal position to get the best out of ourselves."
Modric made the move to Real Madrid from Tottenham Hotspur in the summer of 2012, and he has been a vital part of the club's success in recent years.
The midfielder has made 521 appearances for Los Blancos in all competitions, scoring 39 goals and registering 84 assists, winning three La Liga
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