And the under-fire Blues boss insists owner Roman Abramovich has no say in his team selection.
Ancelotti has been slammed for sticking with goal-shy Torres through the worst run of the Spanish striker's career.
But he denies suggestions he is under orders from Abramovich to keep picking the club's record signing despite Wednesday's 1-0 defeat by Manchester United in the Champions League.
Asked if there is any chance of Torres being axed for Tuesday's return at Old Trafford, Ancelotti responded: "Why not?
"There is a lot of competition up front. It is my job to choose the best line-up and I don't consider the money the club has paid for the players when I do that.
"Roman is intelligent and he would never ask me to do this.
"You don't judge a player by the money he earns. You judge his performance on the pitch.
"I have to choose my team based on the training sessions, the condition of the players and their spirit. Fernando knows this very well."
It is now 2½ months since the 27-year-old's last goals - they were for Liverpool in a 3-0 win at Wolves on January 22.
He has since played 11 games for club and country without scoring and Ancelotti admits: "This is not a good moment for Fernando.