Ancelotti's side got off to a slow start this term, but improved in mid-season and embarked on an unbeaten run which stretched 31 games in all competitions and was ended by the 4-3 defeat at home to Barcelona.
A 2-1 win over the Catalans in the final of the Copa del Rey in April then brought a first trophy for the capital club, while Madrid also progressed to the Champions League showpiece thanks to an impressive 5-0 aggregate win over Bayern Munich recently.
Back-to-back draws against Valladolid and Valencia, followed by a 2-0 loss at Celta Vigo on Sunday, saw the club's hopes of Liga success ended, however, and their season will now be judged on the result of their derby against Atletico later this month.
Below, in alphabetical order, are Goal's three nominees for Madrid's player of the season, based on their club performances in all competitions. Cast your vote in the poll at the bottom of the article.
Gareth Bale has had his detractors since a big-money move from Tottenham in the summer, but the Welsh winger silenced his critics with his wonderful winner for Madrid in the Copa del Rey final victory over Barcelona in April.
Bale brushed off Marc Bartra before bearing down on goal and beating Jose Pinto with a low finish to settle the Copa Clasico and seal some silverware for Madrid for the first time since the capital club claimed the Spanish Supercopa in 2012.
The 24-year-old has impressed overall since moving from north London and now has 20 goals in 42 games, as well as 16 assists for the Spanish side. The winner at Mestalla, however, was the first time he had stepped up when it had mattered most.
A promising partnership with Cristiano Ronaldo should blossom further next term, while the former Spurs star will also benefit from a proper pre-season - something he didn't have this time around following a protracted transfer saga which ended up dragging on all summer.
Luka Modric also arrived at Madrid from Tottenham and following a debut campaign in which he received criticism and was harshly voted "Worst signing of the year" by readers of Spanish sports daily Marca, the Croatian midfielder has enjoyed a superb second term at the Santiago Bernabeu.
Never a prolific goalscorer, the 28-year-old has netted just twice this term, but he has added nine assists and pulled the strings from deep positions for Madrid all season.
Now with over 100 appearances for the club, Modric has established himself as one of the fans' favourites at the Bernabeu and Madrid moved to quash speculation recently that he may move on in the summer.
Cristiano Ronaldo has missed matches through injury and suspension this term, but the Portuguese has scored 50 times in his 46 games to seal his best-ever goal ratio over a single season.
The 29-year-old, who claimed the Ballon d'Or back in January, recently beat Lionel Messi's record of 14 strikes in a Champions League campaign as he reached 16 in just 10 games with a double in the 4-0 victory away to Bayern Munich.
Currently recovering from a muscle problem picked up in the 1-1 draw at Valladolid last week, the Portuguese is expected to return in Madrid's last league game as he builds up his fitness for the Champions League final and also hopes to claim the European Golden Shoe outright for a second time. He is currently tied with Liverpool's Luis Suarez on 31 strikes.