Ancelotti has spent just 18 months at the club from the French capital and this season led them to a first Ligue 1 title since 1994.
But rumours that he is set to replace Jose Mourinho at Real when this season finishes had been gathering pace in recent weeks.
"Following a meeting with Nasser al-Khelaifi and Leonardo (PSG's sporting director), Carlo Ancelotti will no longer be Paris Saint-Germain coach next season," said a message that ran across the bottom of the screen on the TV channel.
Saturday night, Ancelotti had refused to comment on his future, saying only that he would meet with the club's president in the next few days.
Ancelotti's first six months at PSG were largely disappointing as he took over a team at the top of Ligue 1, only to see them overhauled by Montpellier to miss out on the title.
However, this season he delivered on the club's twin objectives of winning the league and reachingthe Champions League quarter-finals.
He was greatly aided, though, by a huge financial investment from the club that allowed PSG to sign the likes of Zlatan Ibrahimovic, Thiago Silva and Ezequiel Lavezzi, as well as bringing in David Beckham on a short-term deal in January.