The former AC Milan coach, who has assembled a world class but expensive squad at Parc des Princes, believes the Portuguese attacker would fit into his team without difficulty
The cash-rich French club have assembled an expensive array of world-class players over the last two summers, signing to likes of Zlatan Ibrahimovic, Javier Pastore, Thiago Silva, Ezequiel Lavezzi and many more.
When Ancelotti was asked if he could see the Santiago Bernabeu star at Parc des Princes he was realistic in the chances of it actually happening but believes the Portuguese forward would fit into the squad superbly.
"I do not know if it is a transfer that the club can do," the former AC Milan coach admitted to L'Equipe. "Ronaldo is a symbol of Real Madrid. But could any coach say he does not want Cristiano Ronaldo?
"I think he can play with Ibra without problem. They have the qualities to play together.
"I do not think this would cause problems of ego [either]. In Milan, I had a lot of players with big personalities, and we built a great team."
After the summer transfer window ended Ronaldo has admitted he had become upset with professional problems at La Liga's reigning champions.
However, any issues appear to have been at least ironed out for now as Jose Mourinho's star player has been in excellent goalscoring form ahead of Sunday's Clasico at Barcelona.