The 36-year-old, son of Brazil boss Carlo Ancelotti, will be taking on his second managerial role after a five-month stint serving as coach of Brazilian top-flight side Botafogo last year.
"LOSC today announced the appointment of Davide Ancelotti as first-team coach. The 36-year-old Italian manager, who has worked with some of the world's biggest clubs and national teams, has signed a two-year contract," read the club statement.
Davide began his coaching career in 2016 and has worked alongside his father Carlo at Napoli, Bayern Munich, Everton and Real Madrid.
He is currently also serving as an assistant coach for five-time world champions Brazil, joining his father's staff in 2025.