The experienced Italian was a somewhat surprising choice by the Madrid hierarchy given his work at Everton was not exactly universally praised, with the Toffees finishing 10th in the Premier League in 2020-2021.
He leapt to the front of the queue for the Madrid job despite Raul and Mauricio Pochettino appearing to be the most-likely options to replace Zinedine Zidane, who stepped down citing a lack of support from those in charge.
Ancelotti's hiring sees him return to the club that dismissed him back in 2015, though president Florentino Perez stressed at the time that their relationship was still strong on a personal level.
That has seemingly remained the case in the intervening years and Ancelotti is confident he is a wiser manager, having missed out on a LaLiga title during his previous two-year spell, though he did preside over Los Blancos’ 10th UEFA Champions League crown in 2014.
"I'm very happy to be back here," he told the club's official media channels. "I've got fantastic memories from my time here, we had a lot of success in the two years.
"It's very important because I'm coming back to my home. I'm really excited and I'm going to give all my energy to help Real Madrid get as high as possible.
"You have to try to improve every day. I've had positive experiences in Germany, Italy and England. Each experience makes you grow and I'm coming back with six more years of experience. I hope it'll be good for Real Madrid.
"I've got responsibility, hope and I'm going to work to the best of my ability. We know what Real Madrid's objectives are every year and we're going to try to meet them with all the experience and energy I can bring.
"I'm so happy to be back because I love this club. I'm very happy and it's hard to explain how I feel. Madrid is the most prestigious club in the world and a club where I really enjoyed the two years I was here. I've got unforgettable memories.
"I have to thank Everton, where I was very happy during the one-and-a-half years I was there. The atmosphere was positive and the people were hard-working.
"I'm back with more experience, I know Real Madrid very well, the squad and I've met some of the players in the past. We're going to do well."
There were periods during Zidane's two tenures where supporters voiced frustration at the style of play adopted by the Frenchman, with Madrid not always embracing the vibrant attacking football perhaps associated with the club in the past.
However, Ancelotti insists it is what he hopes to bring to the fans – indeed, his Madrid team led the way in LaLiga for goals scored in 2013-2014 and 2014-2015 – while he is also pledging to continue bringing through talented youngsters from the club's second team, Castilla.
"At this club we demand to play attacking, exciting, quality and intense football. It's the same way of playing and nothing has changed," he said.
"A coach alone can't win. The winning combination of coach, players and club is the way to succeed.
"I think experience is very important, but youth is also important because it brings a lot of energy and passion when doing things.
"When I was here the first time, four players came up from Castilla and this mix of youth and experience has brought us a lot of success in the past and also in the present."