Bayern Munich coach Carlo Ancelotti believes the Bundesliga giants' new youth academy is a "good answer" to Paris Saint-Germain buying Neymar.

The German champions opened a €70million youth academy on Monday, leading to president Uli Hoeness saying it was the club's answer to "current transfer madness and salary explosion".

Ancelotti agreed it was a good response by Bayern to PSG's world-record €222m move for Neymar.

"It's true, the academy is a good answer," the Italian told Bild.

"The target of the academy is to bring players from here into the first team, to form our own professionals."

Ancelotti, who led Bayern to the league title last season, hopes he can bring players through from the academy.

The 58-year-old pointed to his record at Real Madrid, where he coached from 2013-15, as proof he could make it work.

"I hope so. In Madrid I raised five players from the academy: Jese [Rodriguez], [Alvaro] Morata, Nacho, Casemiro and [Dani] Carvajal, who came back," Ancelotti said.

"I hope for a similar development for the future of Bayern.

"My experience, especially from the Milan academy, is that when players wear the jersey of the club they played for in the youth, it is a very special feeling for them.

"And this is a very strong motivation."