Mendy has agreed a new contract until the summer of 2027 with an option for another year.
Real Madrid have yet to confirm the news. But now Ancelotti says that Mendy has signed the new deal.
"We are very happy with him, he has extended his contract and is doing very well," said Ancelotti today.
Ancelotti has previously said that Mendy is the best defensive left-back in the world. However, he believes that the Frenchman also has offensive qualities.
"His defensive level is very high and he can keep the ball, it's not that he has difficulty (playing the ball), but I don't ask the same from him as the wingers.
"I think he can do it, if we had a winger who plays more centrally, he could do it. But he better stay there because he has to work with overloads sometimes."