The Spanish giants are looking to secure a world record £95m cash-plus-player deal, after the 24-year-old told Spurs he wanted to leave for the Bernabeu.
Ancelotti now wants a quick solution to the deal which would involve Madrid's young striker Alvaro Morata moving to White Hart Lane.
"It's hard to talk about Bale as a player of Madrid, lets see what happens. I am very happy with the squad and with the work we rare doing," the former AC Milan and Chelsea manager said.
But the Real Madrid manager rejected any idea that former Spurs' player Luka Modric would be a makeweight in any deal for Bale.
"All players are working well, we have not discussed anything about outputs, so it is not true about Modric.
"He is a player very important to us. Modric will play with us this season.
"The club is talking right now to find a solution to the case of Bale."
The deal will see the arrival of promising forward Morata, who impressed in this summer's European Under-21 Championship in Israel.
The 20-year-old finished the tournament's top scorer as Spain defeated Italy 4-2 in the final.
Villas-Boas is keen to add to his attack especially with the impending departure of Bale and is edging closer to the club record signing of Roberto Soldado from Valencia.
Soldado will join the club for €30m after three successful years with the Los Che.