Ronaldo has a contract with Madrid until June 2018, but has recently been linked with his former club Manchester United and Paris Saint-Germain.
Nevertheless, ex-Madrid boss Ancelotti would be surprised if his former pupil were to leave the Santiago Bernabeu.
“He etched his name into the record books at Real Madrid the other day when he equaled Raul’s goalscoring record,” Ancelotti told Le Parisien.
“I cannot imagine him leaving Real Madrid.
“I think he will stay at Madrid until the end of his career. Everybody at the club loves him.”
Ronaldo netted twice in Madrid’s 2-0 Champions League win over Malmo earlier this month to equal Raul’s tally of 323 goals and seems set to become Madrid’s sole all-time top goalscorer after the international break.
Ancelotti also had his say on Angel Di Maria, another player he coached at Madrid and who joined Paris Saint-Germain this year after an unsuccessful season at Manchester United.
“Di Maria will help PSG progress, because he is a team player more than anything else. He is not a selfish player at all,” the Italian added.
“I played him in midfield at Madrid because we needed to find a solution after Sami Khedira got injured. He did very well in midfield.
“But I do not think that is his best position. He is even better in attack. He could on either wing and even as a centre forward.”