Tchouameni has not played for the club since suffering a stress fracture during their Champions League semifinal win over Bayern Munich this month. The 24-year-old has played 38 matches for the Spanish champions across all competitions this season.
"He's doing individual work but he's not ready for the (Champions League) final. Let's see if he's ready for the Euros," Ancelotti told reporters on Friday ahead of their last La Liga game against Real Betis.
Tchouameni was also named in France's 25-member squad for the European Championship but the recent injury puts his participation in doubt for next month's tournament in Germany.
The last home game of the season will be an opportunity for the team and the supporters to honour midfielder Toni Kroos, who will retire after Euro 2024. The 34-year-old is among Real Madrid's most accomplished players, having won four Champions League titles with the team.
The German, who previously won the championship with Bayern Munich, is on the verge of becoming only the second player in history to win six European titles after Real Madrid great Paco Gento.
"I don't think it was a difficult decision for him. Veteran players, and legends, have to choose their destiny. Toni has made that decision and it must be respected," Ancelotti said.
"We have to say goodbye to him as best we can. I respect his decision. Saying goodbye like this would be ideal. Then you have to have the courage to do it and I have a lot of respect for what he has done. Replacing someone like this is almost impossible, but this squad has resources in young people so that they take responsibility and follow the path set over the last 10 years," he added.
Real Madrid will take on Dortmund in the Champions League final at Wembley Stadium in London on June 2.