The Spaniard hasn't played a single minute for Los Blancos so far this season. Ancelotti has preferred Dani Carvajal and Lucas Vazquez in the right-back position.
He hasn't impressed Ancelotti since returning from his Fiorentina loan spell last season and remains frozen out at the club with his future in limbo.
The Whites are now looking to sell him in the January transfer window. They have set an asking price of €15 million, which is almost half of what the club paid to sign him from Real Sociedad in 2018.
El Nacional have further reported that Real Madrid are open to negotiations and Odriozola could end up leaving for a much lower figure too.
The 26-year-old wanted to fight for his place in the squad despite reports that Ancelotti didn't want him. However, he's now paying a heavy price for his decision to stay on.
Fortunately for the Spaniard, there is rumored interest from rival Spanish teams such as Athletic Bilbao, Villarreal and Real Betis.
Odriozola has played 43 matches for Real Madrid so far, scoring three goals and providing 10 assists. He was also sent out on loan to Bayern Munich and Fiorentina during his stint with Los Blancos.
Real Madrid in action to Girona tonight
Real Madrid are looking to bounce back from their shock 3-2 loss to RB Leipzig in the UEFA Champions League on Wednesday (October 25). They host Girona at the Santiago Bernabeu today (October 30).
With Barcelona picking up a stoppage-time victory in Valencia, the gauntlet is now for Los Blancos to pick, as they are currently second on goal-difference.
Carlo Ancelotti's side remain the only unbeaten team in the division at this stage, but newly promoted side Girona could be a threat to their record.
The Blanquivermells famously secured a 2-1 win in the Spanish capital in their last encounter in February 2019 before getting relegated.
Since then, this is their first season back in the top-flight. However, they have struggled massively, picking up just two wins from 11 games so far and are languishing in second from bottom in the league table.