The Italian coach says the Portuguese star is fundamental to the club and will remain a key figure going forward.
The Italian coach, who took charge of Madrid for the first time in during the club's 6-0 thrashing of Bournemouth, has had to fend off questions about the Portuguese star's future while the latest reports from Italy suggest that Napoli is close to securing Higuain.
Ronaldo, who has two years remaining on his deal, has been persistently linked with a move away from the capital-based outfit with Manchester United and Paris Saint-Germain the main contenders for his signature, but Ancelotti has denied that the Portuguese will be leaving anytime soon.
"Cristiano is the most important player in the team and he will be in the future, everyone knows him and he plays good games and is good for the club," he told reporters. "Higuain is a fantastic player and right now is a Real Madrid player."
Madrid put on an exhibition display as the club put six past Bournemouth, with Ronaldo grabbing a double while Sami Khedira, Higuain, Angel Di Maria and Casemiro all got on the score sheet.
Ancelotti said he was pleased with the workout but there is still a lot more to come from his side.
"The most important thing is that the team worked hard and players like Cristiano Ronaldo, Ozil, other important players and youngsters played with flair in attack and performed well," he said. "We had problems at first but had some good moments.
"We controlled the match and played well. We have high caliber players with flair and I am very happy with the squad."
Ancelotti was also not afraid to try out different players in different roles with Ozil and new signing Isco forming a partnership in midfield.
"It was an experiment, but I believe quality players can play together," he continued. "It is important to find a balance between attack and defense, which is the most difficult thing.
"I think we need time for that and we will eventually get there."