Carlo Ancelotti has admitted that Real Madrid "dream" of becoming the first side to win back-to-back Champions League crowns.

The Spanish giants lifted their much-coveted 10th European title last season courtesy of a dramatic victory over city rivals Atletico Madrid in the showpiece final.

Since the inception of the revamped tournament in 1992-93 no team across the continent has been able to retain the famous trophy, but ahead of his side's last-16 meeting with Schalke 04 tomorrow night, Ancelotti has targeted more history at the Bernabeu.

"This is fantastic motivation for us," the Italian is quoted as saying by the Daily Mail. "We were here [at Schalke] with the dream to win it last year and we are here this year and we have the same dream. History will say it is really difficult, almost impossible but we have to try."

Madrid remain top of the La Liga table following their weekend victory over Deportivo La Coruna, although they were knocked out of the Copa del Rey by Atletico last month.