Marcel Brands has told Everton defender Matthew Pennington to find a new club for this summer, according to Football Insider.
The 25-y-o defender has spent the last three full campaigns out on loan and is currently at EFL side Hull City.
A source close to Everton has told Football Insider that the Toffees are looking to offload Pennington permanently this year.
Recruitment chief Marcel Brands has been handed the task by the Merseyside hierarchy with moving on a player the Ancelotti does not regard as capable of breaking into their squad.
The centre-half, who can also operate at full-back, is not in the manager plans and has little chance of forcing his way in should he return.
Pennington has featured just nine times for Everton since graduating from their youth team ranks to make his senior debut back in August 2015.
He has had a series of loans of mixed success, with the spell at Hull following season-long loans at Ipswich Town in 2018-19 and Leeds United in 2017-18.
The defender is one of two Everton players on loan at Hull along with 20-year-old winger Josh Bowler.