Spanish newspaper El Mundo Deportivo claims the La Liga giants are preparing for a busy transfer window, with several stars earmarked for sale - to be replaced by a string of reinforcements.
And Chelsea star Ramires is thought to be on their shopping list, alongside Monaco ace Radamel Falcao. Ancelotti's assistant, Zinedine Zidane, and Real Madrid president Florentino Perez are reportedly discussing targets for the winter window, with the Brazilian's name featuring heavily.
Ramires played under Ancelotti at Chelsea during the 2010-11 season, and the Madrid boss is thought to want the Stamford Bridge star alongside Xabi Alonso and Sami Khedira at the Bernabeu.
He's asked Perez to gauge Chelsea's willingness to sell Ramires in the winter window, although it remains to be seen whether Jose Mourinho will consider losing the talented midfielder.
Ramires has featured in all seven Premier League games for Mourinho this season, and the Brazilian's versatility makes him a valuable squad member.
The Blues would also be left short in the middle of midfield without Ramires, following the cruciate ligament injury suffered by Dutch under-21 international Marco van Ginkel against Swindon in the Capital One Cup last month.