The Italian forward has been linked with a move from Manchester City as his relationship with Roberto Mancini continues to toil.
“Right now, we have [Zlatan] Ibrahimovic and I do not think a player like Balotelli is needed”, Ancelotti told reporters.
“Ibra could work with Mario, but this is not the question because we also have [Ezequiel] Lavezzi, [Kevin] Gameiro, [Jeremy] Menez, who can play as a second striker.”
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.