The Real Madrid coach believes that Diego Simeone's men were simply too strong for the Blues and expects the Champions League final to be a close affair despite 'favourites' tags
Madrid secured their spot in the final with a 5-0 aggregate victory over holders Bayern Munich on Tuesday, while Primera Division leaders Atleti duly followed suit by defeating Chelsea 3-1 on Wednesday and Ancelotti expects a tight encounter in Lisbon on May 24.
"Everyone in Madrid is happy and there are no favourites for the final," he told Sky Italia.
"Atletico deserve to be there, they were simply better [than Chelsea].
"Anyone who has been to a final knows there are no favourites. It will be a close game."
The Italian is relishing the prospect of a derbi - the first time in European Cup history that two teams from the same city will face off in the final - and is looking forward to the challenge of ending Madrid's long wait for Champions League success.
"I'm excited," Ancelotti enthused. "I live in a world where you get to enjoy these positive moments. It's a great success getting to the Champions League final with Madrid after 12 years.
"I feel good. It's important because it allows you to see things in the right way. I don't have personal ambitions. I'm working at a club that's perhaps the biggest in the world."