The Blancos coach is confident the Portuguese star will commit his future to the club and also revealed that he sent a message of support to former Barcelona boss Tito Vilanova
The Portuguese attacker's current deal runs out in June 2015 and reports have suggested that the likes of Manchester United, Paris Saint-Germain and Monaco are ready to bid for the 28-year-old.
But the new Santiago Bernabeu coach has praised the player's professionalism and cast doubt on any potential transfer.
"He's a phenomenal player, a great professional," Ancelotti told reporters. "It's important for the club that a player of his quality shows the utmost professionalism.
"It's also important for the young players to look up to people with this attitude. His contract renewal is not my job, but I do not think it'll be a problem."
Tito Vilanova resigned as Barcelona boss on Friday due to health problems and Ancelotti has also wished his fellow coach a quick and complete recovery.
"I want to send a message of support and encouragement to my fellow trainer Tito Vilanova," the 54-year-old added. "I'm sad about this. He is a fighter who will fight.
"I want to tell him that the whole club and squad of Real Madrid - and me personally - are with him. We wish him the best."