The Belgium international has again struggled to make his mark for Los Blancos this season, managing just one goal and two assists in 17 appearances in all competitions.
Newcastle United have been strongly linked with the attacker, and it was thought that Real Madrid would attempt to move him on this summer to make room for new signings.
However, Ancelotti has said that the 31-year-old is in the club's plans for the 2022-23 campaign.
"Hazard is in our plans for the next season, I can confirm," Ancelotti told reporters.
Hazard, who has also been linked with a return to Chelsea, came off the bench to score a late winner against Elche in the last-16 stage of the Copa del Rey on Thursday night.
The Belgian, who has struggled with a number of injury problems during his time at Bernabeu, is also in the squad for Sunday's La Liga clash with Elche. body check tags ::