The Italian remains convinced that the Parisians have what it takes to lift the Ligue 1 title at the end of the season, despite a run of three games without a win
The capital giants have seen their grip on first place in the French top flight slip following a run of three league matches without a win, while leaders Montpellier continue to march on.
However, the 52-year-old has dismissed talk of PSG's title bid collapsing, and is adamant his players possess all the attributes required to pip Rene Girard's men to the championship.
"In my heart, I think PSG will still be champions," Ancelotti told Le Parisien. "We have the quality, ambition and motivation to win the league.
"The players know that this year is very important to us, having gone 18 years without claiming the title.
"If Montpellier win [Ligue 1], then we will simply try to win the title next year. But for now, it is being hotly contested."
Ancelotti then turned his attention to next season. With PSG all but certain to feature in the 2012-13 edition of the Champions League, the coach revealed a place in the last eight is in his sights.
"A reasonable aim would be to reach the quarter-finals, like Marseille this season," he continued.
"Now, with Barcelona and Real Madrid, it's hard to imagine winning the Champions League, but things change quickly.
"With the addition of four new players, preferably young ones, we can be competitive in Europe."
Kick-off at the Parc des Princes is scheduled for 21:00CET.