The 46-year-old has tipped his former coach to enjoy a fruitful spell at the Santiago Bernabeu if a move to the Spanish giants materialises
The Paris Saint-Germain boss is keen on leaving the French capital this summer in favour of the Liga giants, and the former Italy defender believes his old coach has the necessary credentials to do well at the Bernabeu.
"I worked with him and he was always very good. He is a great coach but above all he is a great person who is always there for his players," he told AS.
"Madrid are a top club. It has a special aura because when you play against them it scares you. This is not linked to any coach, but the club and Carlo share similar philosophies.
"There are few coaches around with a level for Madrid, that is true, but Carlo is one of them."
Ferrara worked under Ancelotti between 1999 and 2001 at Juventus before the 53-year-old left for AC Milan.