Ancelotti guided Chelsea to a Premier League and FA Cup double in 2010 and has more recently lifted two Champions League trophies with Real Madrid.
The legendary Italian manager will look to make it three this season as Champions League holders Madrid prepare to face Chelsea in the quarter-finals.
Ancelotti was asked about a possible return to Stamford Bridge in his pre-match press conference but quickly dismissed the links while admitting he is ‘sad’ about Chelsea’s current plight.
Ahead of Wednesday’s Champions League clash at the Bernabeu, Chelsea sit just 11th in the Premier League – 17 points outside the top-four and 34 points behind leaders Arsenal.
‘I am sad. I have great memories of my time at the club. I had two very good years there,’ Ancelotti said.
Asked whether he could return to Chelsea at the end of the season, Ancelotti added: ‘No. I think Frank Lampard will do a very good job.’
Chelsea have decided to wait until the summer to unveil their next permanent manager after sacking Potter, who won just 12 of his 31 games in charge.
Last week, Lampard was appointed as caretaker boss until the end of the season and refused to rule out the possibility of getting the job permanently for a second time following his first spell from July 2019 to January 2021.
Chelsea were beaten 1-0 by Wolves in Lampard’s first match back in charge but Ancelotti is wary of the threat of the struggling Premier League club.
‘We have to respect Chelsea,’ he said. ‘They are not going through a good moment but they have a very good team. Sometimes when you’re at your worst, you bring out the best.
‘We have to think it’s a 180-minute game and try to do well tomorrow. It’s not decisive, but we can help manage the second leg better.
‘We’re looking forward to getting back in the Champions League and experiencing a magical night at the Bernabeu.’
Asked if his experience over Lampard gives Real Madrid a clear advantage, Ancelotti added: ‘I don’t think my experience will change what happens tomorrow.
‘Lampard has been a great player who I coached for two years. He knows these kind of games well and how to prepare his team. He has been here for a week, but he will do well in the time he is at Chelsea.’
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