Carlo Ancelotti has made the startling admission that he does not consider himself to be in control at Chelsea after effectively seeing his position at the Premier League champions undermined by the surprise dismissal of his assistant first-team coach Ray Wilkins.

The Italian was described by a close ally as being at his "lowest ebb" since swapping Milan for Stamford Bridge 18 months ago and was reported to be considering his position. He is understood to have consulted the League Managers Association over his future.

Chelsea dismissed rumours that Ancelotti had resigned as "absolute nonsense". The Italian's remarks about his lack of control at Stamford Bridge follow an unsettling period that has seen the team's lead at the top of the Premier League cancelled out and Wilkins replaced by the little-known Nigerian Michael Emenalo on the owner Roman Abramovich's instigation.

Ancelotti had been flanked for the first time by Emenalo in the dug-out at Birmingham City on Saturday as Chelsea succumbed to their third defeat in four league games – they have suffered successive league defeats for the first time since May 2006 – to leave them above Manchester United at the top only on goal difference. Yet Ancelotti said he is competing from a much weaker position than Sir Alex Ferguson at Old Trafford, with the hiring and firing of his staff, and the club's transfer policy, out of his hands.

"You have to compare me with [Sir Alex] Ferguson, it's a different position," said Ancelotti in the wake of the 1-0 loss at St Andrew's. "It is different because Ferguson has total control of the team. I am just [providing] technical direction. Full stop. OK." Asked whether Wilkins's shock dismissal 11 days ago was still having an effect on the side, he added: "This is not the reason why we lost. We lost the games because in four games we scored just one goal. We have to improve there, to stay more in focus. We have to continue to play like we did against Birmingham."

Although it remains unlikely that Ancelotti would tender his resignation at present, particularly given the fact he has experienced similar constraints while working under Silvio Berlusconi at Milan, the past two weeks have exposed an unnerving fragility in the hierarchy at Stamford Bridge. The manager had been supportive of Wilkins, who has suggested he will explore possible legal action against the club over what he considers to have been his "undoubtedly unfair dismissal", but was powerless to prevent his departure and had little say in the choice of the new assistant first-team coach. The episode, so untimely given Chelsea's smooth ascent to the Premier League's summit, has left him uncomfortable.

It was Avram Grant's imposed appointment as director of football in 2007 which clearly heralded the beginning of the end for José Mourinho.

Emenalo, who is continuing his role as chief opposition scout, has yet to complete the necessary coaching qualifications and is not involved in the first team's training sessions. The Nigerian has no direct experience of coaching a top side, though it remains to be seen whether Ancelotti's assertion last Friday that the assistant's duties would not change even after he has acquired his necessary badges proves valid. "He's doing the same job as Ray Wilkins," said Ancelotti when asked what Emenalo contributed during games.

The Italian, who remains adamant that his side will bounce back from their recent mini slump, has yet to open negotiations on a new contract at Stamford Bridge, where his deal has 18 months to run. When asked about his future earlier this month, Ancelotti had been comfortable to begin talks at the end of the campaign. "I don't know what will happen, but I have a contract with Chelsea until 2012 and I want to respect this," he had said. "It's not the time now. I hope to stay. I don't have a problem to sign a new contract but this won't be my last job. Above all I would like to have experience with a national team."

Rumours circulated on the internet last night that Ancelotti, so dismayed by recent events, had tendered his resignation, though Chelsea were dismissive of their validity. The manager is due to give a pre-match press conference on Monday ahead of the visit of Zilina to Stamford Bridge in the Champions League on Tuesday, with the Italian hoping to use the match as the springboard to a recovery.