Real, who have already clinched their 36th La Liga title and reached the Champions League final after beating Bayern Munich, are in top form according to Ancelotti, who wants to make the most of their remaining games.
"These games are important to maintain the rhythm, the good dynamics, the motivation and the good play. There are two weeks left. Now we'll rest for a few days and next week we'll do some physical work. In the second week we will do tactical work," the coach told a news conference.
"For me as a coach, it's the best season. The team has been fantastic, we deservedly won La Liga. We're on a cloud, but we have to keep going because we haven't played the most important game yet."
Real, unbeaten in all competitions since January, have 93 points from 36 games in the Spanish top flight, something Ancelotti put down to the team's young talent.
"This team has a lot of talent. Very young people with a lot of quality. It has the opportunity to mark an era in the future, given the value of the youngsters we have."
The coach also spoke about the future of Germany midfielder Toni Kroos, who returned to his national side after a three-year break and will be out of contract with Real at the end of the season.
"At the moment, we are not worried about what he is going to do, neither am I, nor the club, nor Toni. Until June 1, this is a secondary issue. We are now thinking about winning the Champions League,"
"The Ballon d'Or for Kroos? Well, anything can happen. If he wins the Champions League and the Euro. I think he can do a double. Germany can win with Kroos," he added.