Atletico were victorious in both La Liga meetings this term – the most recent a 4-0 thrashing in February – and knocked Real out of the Copa del Rey as well as beating their city rivals in the Supercopa de Espana back in August.
Real's last win over Atletico, in fact, came in last season's Champions League final.
The seventh meeting between the teams in 2014-15 takes place at the Vicente Calderon and Ancelotti is brimming with confidence after Real kept the pressure on Liga leaders Barcelona with a 3-0 success over Eibar on Saturday.
"The last results against Atletico are a motivation for us," said the Italian coach.
"We are convinced it will be a different game, but difficult as always we play Atletico.
"But we are in a good moment, full of motivation for the European competition and we are going to give our best.
"We haven't got any doubts it will be an intense game. We do know intensity will be an important component within the game, but then there are other things as well which we have to use."
Javier Hernandez, who has been linked with a move to MLS, made the most of just his second Liga start by netting against Eibar, much to the delight of Ancelotti, who is remaining coy on the future of the on-loan Manchester United striker.
He added: "Chicharito took advantage of his chance.
"He did very well. He scored once, he worked a lot, he nearly scores another time. So I think Chicharito performed a very complete game.
"Let's see what happens in the future. Currently, Manchester United own him. Let's see at the end of the season."
