The Real Madrid manager threw his support behind the Portuguese star after watching his side beat Paris Saint-Germain 1-0 in a friendly Thursday.
Madrid ran out 1-0 winners over Paris Saint-Germain in a friendly in Qatar, thanks to Jese Rodriguez's 18th-minute strike. And the Italian used his post-match press conference to throw his weight of support behind Ronaldo.
When asked if the Portuguese should win the Ballon d'Or he said: "Yes, he's playing very well."
Ancelotti also used the opportunity to discuss the respective futures of Alonso and Iker Casillas.
"Casillas' situation is very clear. He will play in the Champions League and in the cup as well. About Xabi Alonso, I think that we will find a solution and reach an agreement between the club and the player."
The 54-year-old then added Madrid would not be active in the January transfer window, with the Italian seemingly content with the squad at his disposal.
"There is nothing new regarding that. No players are leaving and we're not going to sign anyone. The window is closed for us."
Madrid hosts Celta Vigo on Monday as it makes its return to Liga action following the international break.