Baresi: Blues should keep Ancelotti
51-year-old Baresi, who spent his entire career at AC Milan, where Ancelotti was coach before moving to London, said: "If I was to give advice to [Roman] Abramovich, I'd say, 'Keep Ancelotti'."
Demanding Blues owner Abramovich has already been linked with moves for Turkey coach Guus Hiddink, who had a brief spell as temporary Chelsea manager in 2009, and former Barcelona coach Frank Rijkaard.
But Ancelotti is still unsure if Abramovich will call time on his reign after Chelsea surrendered the Premier League title to Manchester United and failed in the UEFA Champions League.
"Ancelotti did a great job in the first season, winning the double," said Baresi, who was in Hong Kong to launch AC Milan Soccer Schools in southern China PR.
"This year has been a bit up and down, but he's a good coach. He's got one more year on his contract left and I think he can finish the job well next season."
Ancelotti joined his players on the traditional lap of honour that followed the final home game of the season after his side's 2-2 draw with Newcastle United yesterday, leaving the Italian's future at Stamford Bridge in major doubt.