"We are improving and everything is heading in the right direction," said Ancelotti. "On Friday will be the trofeo Berlusconi and that will be our last friendly before the official season starts, so I'll be selecting my first-choice team.
"I knew plenty about Inter already, they have many strong players. Juventus have also impressed me, they've signed many young players and are already a competitive team."
Asked about Milan's move for Real Madrid midfielder Emerson, Ancelotti: "There's been no news."