Ancelotti feels it is now time for the Uruguay midfielder to take a senior position inside the dressing room.
He explained: “Valverde is performing at a top level. I don't know if he's shy, but he's taking more responsibility in the dressing room every day.
"Losing players as important as Kroos, Nacho, and previously Benzema and Casemiro, is bound to have an impact on the atmosphere, but then others have really stepped up in this sense and Valverde is one of them. I don't know if he's been shy in the past but I don't see a timid player now, I see a vital player for us.
"He's improving every day and I'm delighted with him. Valverde has all the attributes required of a top-level central midfielder. He's smart tactically, has a fantastic engine. He's a wonderful player."