Real Madrid boss Carlo Ancelotti has claimed that Bayern Munich are the favourites for the Champions League this season.

Bayern beat Borussia Dortmund in the final of the competition last season and have once more been installed as the favourites by a number of bookmakers.

"Bayern Munich [play the best football in Europe]. They play as a whole," he told the Il Corriere dello Sport. "They're the true favourites for three reasons.

"Firstly, they're a strong team with a coach who knows how to win the competition. Secondly, they're champions and this is important.

"Thirdly, they have already won the league in practice and devote their resources to the Champions League. I think the latter is the most important reason. La Decima is the dream for every Madridista. At the [Santiago] Bernabeu we'll play big games."

Real Madrid face Schalke 04 in the last-16 stage of the competition next week.