Bayern's hierarchy reportedly view the 30-year-old as a long-term coaching prospect and the Bundesliga champions could ramp up their interest after the dismissal of Ancelotti.
Nagelsmann has won widespread admirers since taking charge of Hoffenheim in February 2016, steering the club clear of relegation two seasons ago and defying expectations to achieve European qualification last term.
But while he has previously spoken of his affinity to 'home' city Munich, Nagelsmann is playing down links to Bayern.
"Do not include me in the speculation," Nagelsmann told Sport1 ahead of Hoffenheim's UEFA Europa League clash at Ludogorets.
"My media department has kept everything away from me."
Hoffenheim have won four of their six league matches this season to sit second, one point ahead of Bayern, but went on to lose 2-1 against Ludogorets.