The Bayern team and management are now travelling back from Paris and Sportbild says Ancelotti could be sacked later on Thursday when a "crisis meeting" is held in Munich.
Former AC Milan, Chelsea and Real Madrid manager Ancelotti was in charge at the Allianz Arena for 15 months since taking over from Pep Guardiola in July 2016.
Bayern were swept aside by French giants PSG, who recorded a comprehensive 3-0 Group B victory thanks to expensively-assembled attacking trio Edinson Cavani, Neymar and Kylian Mbappe on Wednesday.More news: ODI: Australia fight back to victory
A slow start to the new Bundesliga season has seen Bayern lose one and draw one of their opening six games to leave them third in the table.
Former Borussia Dortmund boss Thomas Tuchel is second in the odds at 11/4 and Bayern's assistant coach Willy Sagnol is 7/1 to take the top job.
Wednesday's 3-0 loss at Paris Saint-Germain led club chairman Karl-Heinz Rummenigge to warn of "consequences" after what he called a "very bitter defeat". "I expect the team to produce a positive response and show absolute determination to achieve our targets for the season".More news: Sessions: Trump 'Has Free Speech Rights too'
He left Franck Ribery, Arjen Robben, Mats Hummels, and Jerome Boateng out of the starting line-up for the defeat at Parc des Princes, yet insisted after the match that "I don't regret anything". "Carlo is my friend and will remain so, but we had to make a professional decision on Bayern's behalf".
"I thought a lot about what the best team to play was. Hasan Salihamidzic (the club's sporting director) and I met Carlo today for full and frank discussions where we informed him of our decision".
His methods are seen as nearly archaic in comparison to the Spaniard's, and past year was season as something of a failure when Ancelotti, touted as an expert in the Champions League when he arrived, could only lead the club to the quarter finals before being knocked out by eventual champions Real Madrid.More news: The SNES Classic Has Launched - And It Went Better Than Expected
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