The Italian coach hesitated to label any team as favourites to win this year's edition just one day before Los Blancos' Champions League opener against Inter Milan on Wednesday at the Estadio Santiago Bernabeu.
"It is difficult to say if there is a team who are favourites," Ancelotti said at his press conference.
"[Real] Madrid will compete as always in the competition. The idea is to compete to the fullest, because we know how important it is. We will fight for everything.
"It is a competition that makes Real Madrid very excited. We know that it is a difficult start, because Inter have a great team, with a very enthusiastic new coach."
Ancelotti also discussed about Vinicius' form in this first stretch of the season and claimed that his player has been more clinical in front of goal this year than previous campaigns.
"Everyone sees that the only difference now is that he is colder in front of goal," declared Ancelotti.
"He is very good in one-on-one [situations] and I hope he continues finishing well.
"I try to treat Vinicius like I treat others. I tell them to be focused on working. In the case of Vinicius, playing gives him confidence and physically he is doing very well."
The Italian coach compared his first season in his first spell at Real Madrid, when he won the Champions League, to his first campaign in the second spell. Ancelotti said that his men are as motivated just like his former players were back in the 2013/14 season.
"There is a different atmosphere, but it is no coincidence that this club have won 13 Champions League [trophies]," noted Ancelotti.
"There is a special motivation that exists with this competition. The motivation before this match is the same as before the 10th [Champions League]."
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