Los Blancos announced on Saturday that Marco Asensio and Mariano Diaz will be leaving the club when their contracts expire at the end of the month.
Meanwhile, an agreement has been reached with Eden Hazard to terminate his contract this summer despite having another 12 months left to run on his deal.
Nacho and Ceballos also only have contracts until the end of June, but Ancelotti has hinted that the Spanish giants are keen for the duo to sign new deals.
"They know what we think of them. I think they have everything very clear. They are waiting for the end of the season to decide what they want to do. Everything is in their hands," Ancelotti told reporters.
Nacho came through the youth system at Real Madrid, and he has been in their first team for the last 12 years, making 318 appearances in all competitions.
The 33-year-old has again been a regular during the 2022-23 campaign, featuring on 43 occasions in all competitions, including 26 outings in La Liga.
Nacho's versatility makes him a vital member of the squad, with the Spaniard capable of playing across the back four, but he has only started 17 of the team's 37 league games this term.
Inter Milan are currently being heavily linked with the defender, with the Italian giants allegedly prepared to offer him a three-year contract to move to San Siro on a free transfer.
Ceballos, meanwhile, has made 45 appearances for Real Madrid during the 2022-23 campaign, scoring once and providing nine assists in the process.
The 26-year-old has only started 18 times in La Liga, though, and he would find himself further down the pecking order in midfield if Jude Bellingham moves to Bernabeu from Borussia Dortmund.
Ceballos arrived at Los Blancos from Real Betis in 2017, and he has represented the capital giants on 119 appearances in all competitions.
"Next year's squad will be very competitive. Obviously there are contracts that expire and there will be different players. But it will be competitive," Ancelotti added on Saturday.
Fran Garcia will become Real Madrid's first signing of the summer transfer window, with the defender returning to the club from Rayo Vallecano.