Ancelotti has already guided Madrid to Copa del Rey glory in his first season in charge of the Santiago Bernabeu side, while also reaching the final of European club football's elite competition as well as fighting for the Liga title after successful spells with AC Milan, Chelsea and Paris Saint-Germain.
"Ancelotti is good for football and has enriched it," Del Bosque was quoted as saying by Marca.
"Apart from the good relations and manners that he has shown, he has also managed a complicated squad at Madrid.
"He has built the team up little by little – not from the very first day, but over time the men have come together and the basis of a good team has been moulded."
Del Bosque also had his say on Pep Guardiola following Bayern's Champions League exit and insisted that the former Barcelona boss faces a tough challenge at the Bundesliga champions.
"It was Guardiola's worst day," he added.
"I admire him for his work at Barcelona and the challenge he faces at Bayern, a difficult club, but he has a strong personality and it is a real skill to deal with a squad like theirs, in a different language.
"He is a fine example of a Spanish manager."