The Italian trainer believes that Milan are not at the same level as the Catalan giants, but says that the Rossoneri are favourites ahead of Juventus to win the Scudetto
The Rossoneri crashed out of the continental tournament after a 3-1 aggregate defeat to Barca, with the Serie A champions highly critical of the standard of match officiating in the return leg at Camp Nou.
Ancelotti, who coached Milan between 2001 and 2009, has come out in defence of his former club and conceded that the Blaugrana were at a superior level.
"Milan did everything they could against the strongest side in the world," he told La Gazzetta dello Sport.
"Nowadays, only Real Madrid can compete against the Catalans."
The 52-year-old then shared his opinion on the Scudetto race, saying that he trusts Milan's chances to fend off the threat of Juventus and retain their Serie A crown.
"Being two points clear will do, but Milan will have to win all of their remaining games," Ancelotti noted.
"In the end, I think that the Rossoneri will win."
Paris Saint-Germain have been struggling to confirm their superiority in Ligue 1 as they currently share the top of the table with Montpellier, who have a game in hand, and Ancelotti admitted that he will look to fine-tune his squad in the summer.
"The squad will be strengthened, but there will not be a revolution," the Italian coach explained.
"We will sign three or four players, but I want PSG to have a French soul because a sense of belonging can make a difference nowadays."