The Brazil international was one of several players tipped to leave los Blancos following Jose Mourinho's exit but he has confirmed he will not be leaving the Santiago Bernabeu
The 31-year-old joined the club from AC Milan back in 2009 with a reputation as one of the game's greatest players, but his stock has fallen during a disappointing spell at the Santiago Bernabeu.
The Brazil international was one of several players tipped to leave los Blancos following the departure of Jose Mourinho to Chelsea, but recent developments will see the former-Rossoneri star remain at the club beyond the summer transfer window.
The appointment of Ancelotti as coach, who masterminded Kaka's rise to stardom at San Siro, has culminated in the pair having positive talks regarding his future, and he is now certain over where he play his football next term.
He told reporters: "I have a contract with Real Madrid, and we have got a new coach. I have had positive communication with Carlo Ancelotti and I will stay."
The midfielder was left out of Brazil's squad for their Confederations Cup campaign and watched the Selecao's 3-0 dismantling of Spain in the final during a plane journey to Dubai.
However, national team boss Luiz Felipe Scolari has hinted at handing recalls to Kaka and fellow absentee Ronaldinho for future internationals and he admits World Cup 2014 remains one of his main objectives.
"I saw the game [Brazil 3-0 Spain] in Dubai during my flight. Brazil played very well and congratulations," he added.
"There is one year until World Cup 2014, I really want to play in the World Cup and I have many memories about that."
Kaka's contract at Real Madrid runs until June 2015.