Carlo Ancelotti says Napoli are still negotiating a deal to sign James Rodriguez from Real Madrid as Atletico Madrid reportedly circle.James has been linked with Napoli throughout the current transfer window, but a deal that would reunite the Colombia star and head coach Ancelotti is yet to materialise.Atletico have emerged as a possible destination for James amid a deadlock in talks between Napoli and La Liga giants Real. Article continues below Editors’ Picks Emery out of jail – for now – as brilliant Pepe papers over Arsenal’s cracks What is Manchester United’s ownership situation and how would Kevin Glazer’s sale of shares affect the club? Ox-rated! Dream night in Genk for Liverpool ace after injury nightmare Messi a man for all Champions League seasons – but will this really be Barcelona’s? Asked about Napoli’s pursuit of James, Ancelotti told TV Luna: “I’m not aware of a deal with Atletico.”We’re still talking for James, a player that I really like. I’m very attached to James, I rate him very highly and he can certainly improve our team.”He doesn’t need to re-announce himself, he’s a great player. But he’s not the only player we’re openly negotiating for. We’re assessing many players.”While negotiations for James drag on, Napoli are close to signing Fenerbahce and Macedonia midfielder Eljif Elmas.With Amadou Diawara now at Roma and Marko Rog poised to move to Cagliari, Napoli have turned to the 19-year-old Elmas as Ancelotti’s men look to dethrone Serie A champions Juventus in 2019-20.”We’re very close and I hope a deal closes quickly,” Ancelotti added. “He’s a very interesting player and we’re defining the final details. I hope he arrives before we leave Dimaro.”We were looking for a player skilled at playing between the lines, and Elmas has a lot of quality.”The squad is already very complete. We have to take a little step at a time. We’re very close to the top.”We’ll be happy as of August 31. Napoli are working and nothing is impossible, but then there are the wants of the players or problems with the clubs or agents.”Ancelotti has already seen his club make one major signing this summer, with Greek defender Kostas Manolas arriving from Roma for €36 million (£32m/$41m).Napoli have been continually linked with James, whom Ancelotti managed at the Bernabeu as well as with Bayern Munich.He is also keen to keep some of his side’s key players from departing, including left-back Mario Rui, who started 17 league matches for Napoli last term.