Foden has 24 goals for City in all competitions this season and has often been utilised in more central roles by coach Pep Guardiola
"Napoli has decided to revoke the position of first-team coach from Carlo Ancelotti," the club said in a statement.
"The relationship of friendship, esteem and mutual respect between the club, its president Aurelio De Laurentiis and Carlo Ancelotti remain intact."