The former Italy international has backed his compatriot for the vacant position of head coach at the Primera Division giants
Madrid see Ancelotti, 54, as the ideal replacement for the recently-departed Jose Mourinho and Cannavaro has backed his compatriot to succeed at the Spanish giants.
"Ancelotti is a coach with a lot of experience. He won the Champions League while at Milan, playing some great football in the process," Cannavaro was quoted as saying by AS.
"He has also won plenty of silverware in England and recently won the league in France with Paris Saint-Germain.
"Carlo has a great CV and would do a good job at Real Madrid."
Cannavaro wore the Madrid jersey from 2006 until 2009.