The 21-year-old has started only 15 La Liga games for the leaders this season following his move from Malaga in June.
Ancelotti has struggled to fit Isco into his system in his first campaign with the Spanish giants, but last weekened likened the talented playmaker to Seedorf - who played an integral role in the Italian tactician's UEFA Champions League-winning side at Milan a decade ago.
The former Chelsea manager has revealed that such praise was music to Isco's ears and he has no doubt that the rising star's time will come.
Ancelotti said: "I have talked to Isco about me comparing him with Seedorf and he was happy because he enjoyed watching Seedorf play.
"Moreover I have talked to Seedorf and he was happy as well, because he considers Isco a great player with a big talent.
"We will see, but I am pretty sure Isco can play in an advanced midfield position without any problem."
