The Italian has lauded the attacker's consistency over the past five years and said a move for Monaco striker Radamel Falcao is unlikely.
The Portuguese has been installed as the favorite to win the prestigious award ahead of his fellow final three nominees - Barcelona's Lionel Messi and Bayer Munich's Franck Ribery - partly due to an explosive start to the season that has seen him score 26 times in just 19 appearances at club level.
Ancelotti, however, insists the 28-year-old has been playing at such a high standard throughout his career in Spain.
"Cristiano's not just in a golden moment of form now - he's been at this level for four or five years," the Italian coach told the press.
Speculation has mounted over the future of Monaco striker Radamel Falcao in recent weeks, with the Colombia international rumored to be considering a transfer away from the Ligue 1 club, but Ancelotti has denied that Madrid is in the running for his signature.
"Falcao is a great player, but at this time we are happy with all the forwards we have. At this time I don't think he's a suitable player for us," he said.
Ancelotti has also said that he would like to see Xabi Alonso pen a contract extension, but maintains it is now the Spain international's decision.
"I've told Xabi Alonso that everyone here - players, fans, myself – all want him to stay. After that, the decision is his," the former Paris Saint-Germain, Chelsea and Juventus boss explained.