The former defender feels the Italian will need to bring success to the Spanish capital quickly and claims Franck Ribery is the "logical" choice for the Ballon d'Or
Ancelotti replaced Jose Mourinho at the Santiago Bernabeu helm in the summer but has only steered his side into third place in La Liga at the halfway point in the season, with Atletico Madrid and Barcelona five points further ahead.
Breitner believes Ancelotti's trophy record with the likes of Paris Saint-Germain and AC Milan bodes well for los Blancos but suggested the Italian must deliver quickly if he is to enjoy a lengthy spell in the Spanish capital.
"He is a great coach who has won major titles," said the former Germany international to AS. "He will do very well, but he needs a bit of time to adapt his ideas into the great squad he has. But then, in Madrid, there is no time to acclimatise."
The 62-year-old went on to suggest the club paid too much for €100 million man Gareth Bale in the summer, although he feels the Welshman brings some important pace to the attack.
"The price was debatable, but he is a player who can bring a lot of speed to the Madrid game," he said.
Real star Cristiano Ronaldo has established himself as a favourite to lift the 2013 Ballon d'Or prize after an exceptional run of form in the past year, but Breitner believes Bayern Munich's Franck Ribery is the "logical" choice ahead of the Portugal attacker and current holder Lionel Messi.
"I think Ribery had a really sensational year. He won it all with his team, scoring vital goals and being a leader in all the important clashes," said Breitner. "Leo won the league with spectacular numbers with Barca, while Cristiano won nothing. He ran a lot, he fought like few others, but didn't lift a single trophy. It's logical for Ribery to be chosen."
Finally, Breitner - who now operates as an advisor to the Bayern board - feels the Bavarians did spectacularly well to secure Pep Guardiola as head coach at the end of last season.
"We signed the best coach in the world. He's proven that since the first day," he added. "He is a man of character, one who the crowd loves dearly.
"Without a doubt he has improved the team he had in Barcelona, where he played perfect football - pressing high, quick movement, a strong rearguard and a safe goalkeeper. Modern football is better for Guardiola and Barca."