The Italian has stated his desire to leave the Parc des Princes and met with club officials last week to discuss his future with the Spanish giants waiting in the wings.
The former Merengues defender says the Italian's personality and relationship with the players are some of the reasons he is such a good boss and has tipped the coach to succeed if he joins the Spanish club.
"He has good experience to do well in Madrid. He is quiet, very professional. A guy who likes to talk about football, not the crap they are at the moment," the 39-year-old told AS.
"The most important thing about him is he's a great coach, who likes to win and play well. He's used to people with big characters or charisma, such as [Zlatan] Ibrahimovic and [Gennaro] Gattuso.
"I like talking about how Ancelotti is off the field. He's not a coach, he's a brother. He likes us to call him Carlo, no coach or boss."
Zinedine Zidane has been touted as a potential candidate to team up with Ancelotti at the Bernabeu and the Cannvaro believes his old team-mate has all the attributes to flourish in any part of the game.
"He has the quality to do everything and decide in a short time. He has a quality that never goes to waste. Football needs people like him as a director, coach, everything," he added.
Cannavaro added: "He did a good job by putting pressure on Barca. The pity is that it ended badly with the players, he fought too much and that's not good. The dirty clothes are cleaned at home. It's has been a pity.
"Iker is like a brother to me. What he experienced under Mourinho is going to serve him better in the future and will lengthen his career. Now he is going to enjoy the game more."