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 favourite 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 rumoured to be considering a transfer away from the Ligue 1 club, but Ancelotti has denied that Madrid are 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.
Looking ahead to the weekend's Liga fixture away to Osasuna, Ancelotti reported that he will not make any changes to the side that beat Copenhagen in the Champions League in midweek, while Raphael Varane is still building strength in his knee and will miss the trip to Pamplona.