Former Chelsea and AC Milan boss Ancelotti has been in charge at the Allianz Arena for almost 15 months after taking over as Pep Guardiola's successor in July 2016.
According to German outlet Kicker, Bayern players are assuming that Ancelotti will lose his job ahead of their clash with Hertha Berlin on Sunday.
However, Bayern were eliminated by Ancelotti's former club Real Madrid in last season's quarter-finals, going down 6-3 on aggregate.
Bayern CEO Karl-Heinz Rummenigge warned there would be consequences following the defeat in France, with SportBild reporting on Thursday morning that a meeting was due to be held later in the day to discuss Ancelotti's future.
"I'd like to thank Carlo for his time working with us and I'm sorry about the way it has developed", Rummenigge added. The match in Paris clearly showed we had to take immediate action. "Carlo is my friend and will remain so, but we had to make a professional decision on Bayern's behalf".
However, the current campaign has been equally shoddy, with Ancelotti having to fend off rumours that he had a January departure to the Chinese Super League lined up, amid muddled team selection and poor performances, including blowing a two-goal lead at home to Wolfsburg to draw 2-2.
The decision to leave Arjen Robben, Franck Ribery and Mats Hummels on the bench and Jerome Boateng out of the squad, despite no indication of any injury problems, prompted criticism of the coach. "We had to take control, and we had chances too".
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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.