Reports suggested Real were lining up a deal for the Colombian, particularly given speculation in France of a problem between Falcao and Monaco coach Claudio Ranieri -- which has been denied by both parties.

But Ancelotti insisted Friday there is no truth in the rumours.

"Falcao is a great player but right now we're very happy with all our forwards because we score a lot of goals and combine well," said Ancelotti.

"I don't think Falcao is the player we need."

Falcao has missed Monaco's last three matches with a hamstring injury and is set to sit out against Guingamp as well on Saturday.

His absence has led to sections of the French press claiming all is not well between Monaco and their star signing.

But on Thursday, Falcao said: "I'm very happy at Monaco.

"My wife is very happy to live here. There's no problem with the coach, no problem with the doctor and no problem with the team.

"I've just got a little problem with a (hamstring). But I'll soon be playing again."