Real are in crisis after a dismal home defeat to Champions League opponents AC Milan last night.
Mijatovic later told Radio Marca: "Real Madrid are going through a bit of everything... My feeling is that the team has gotten out of Ancelotti's hands.
"With the changes he made, he practically didn't know where to start with the team or how the team should react to try to at least come back... Carlo made the changes with the intention of improving and they weren't very good."
He continued: "After two or three splendid years, with everything they have won, the team relaxes a little. It's clear.
"What solutions can be found? At the moment, there are very few, really. I don't know if Ancelotti has the ability to react. I don't know if he has the ability to restart the whole situation and motivate these players.
"I think there are many players who are not happy. They play less than they thought they would..."
"There is a situation that worries me personally. Ancelotti cannot take them and say 'you have to do what I say'. He is listening to too many opinions. He does not have the same position as he had in recent years."