The 55-year-old left his homeland in 2009 to take charge of Chelsea after an eight-season spell with AC Milan, during which he won the Champions League twice and one Serie A title.
However, he has yet return, having since enjoyed successful spells at Paris Saint-Germain and now, Real Madrid.
Ancelotti is continually linked with top jobs in Italy, as well as the role of national team coach, but the former Azzurri midfielder revealed he has no desire to return home.
"Before I left Italy I thought about things, it was not easy, but I've felt comfortable abroad," he told Radio Rai. "I would not return.
"Italian football is still very competitive. The difference is the environment.
"The stadiums are empty compared to other countries and the violence is more common in Italy than other places.
"What happened in Cagliari, Roma and Varese is very sad. It can no longer be that the players are hostages to brainless fans.
"Here [in Spain], the demonstrations are limited only to the whistles in the stadium. The ultras and the banners no longer exist.
"But it's not this that keeps me away, so much as the pleasure that comes from living a foreign adventure and getting to know other sporting cultures."
Ancelotti also ruled out the prospect of him taking the Italy job any time soon - despite reports that current coach Antonio Conte is unsettled.
"The national team is in great hands now," the Blancos boss stated. "It will be an idea for the future but for now I'm enjoying coaching every day, giving everything every day on the training pitch."
Despite his disdain for certain aspects of the Italian game, Ancelotti still follows Serie A closely and retains a keen interest in former club Milan.
The Rossoneri are currently struggling under Filippo Inzaghi, who played under the Madrid boss as a player at San Siro, but Ancelotti is hoping the club stand by his former charge.
"Inzaghi is a part of the history of Milan. Milan took a risk because they chose a coach without experience but nobody has experience when they start.
"He was the right choice and it was the right choice for Pippo to accept, even though he knew the difficulties that he would face.
"I know that Milan continue with Inzaghi and that little by little, we will slowly start to see the start of something good."
Ancelotti also reserved kind words for Italy international Marco Verratti, who is again being touted as the natural heir to playmaking icon Andrea Pirlo on account of his fine form for Paris Saint-Germain.
"Marco's the most equipped to replace Pirlo," he added. "He has something that few others have at his age: personality. And this combines well with his technical quaility.
"His technique is different to Pirlo - he plays a shorter game - but he can be his ideal replacement."
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