Real have started with eight wins in their opening nine league games to top the table, as they bid to seize the trophy lifted by Barcelona last term.
And a new claim suggests that Ancelotti and his backroom staff are considering a move for a key player that would shake up the way Pep Guardiola plays in the Premier League.
Argentinian journalist Sebastian Srur posted to X (formerly Twitter) that Real were interested in Julian Alvarez.
Srur wrote: ‘#RealMadrid is interested in Spider @julianalvarezzz. The Argentine does not have a clause in #City.’
Real Madrid are considering a bid for Manchester City’s Julian Alvarez to boost their squad
Carlo Ancelotti’s side seek a long-term striker to come in after Karim Benzema’s summer exit
Alvarez, 23, has been in fine form for Man City this season, starting all eight of their Premier League games, scoring three goals and setting up another four.
It is a run of attacking form that has attracted Real Madrid to the Argentinian World Cup winner, with Transfermarkt valuing the hit man at €80m (£70m).
Alvarez is under contract at the Etihad until June 2028, and with no release clause option in his deal, it could prove complicated for Real to try and tempt him to Spain.
Guardiola has had to find a way to play Alvarez alongside Erling Haaland, and their combined success was a big part in Man City’s route to the Treble last season.
Real Madrid are currently seeking a long-term solution to their striker issues following the summer exit of Karim Benzema to Saudi Arabia.
Joselu came in on loan, and has scored five goals in nine league games, but at 33 years of age, he is not a long-term option.
Third-place Man City host Brighton in the Premier League on Saturday afternoon, whilst LaLiga toppers Real Madrid travel to Sevilla that evening.
Pep Guardiola has played Alvarez in every Man City Premier League game so far this season
Guardiola has had to find a way to play Alvarez alongside Erling Haaland and Phil Foden