The Belgium international has largely struggled to make his mark for Los Blancos since arriving in a big-money move from Chelsea in the summer of 2019.
The 30-year-old recently picked up a muscular problem but was named in the squad against Barcelona last weekend.
Hazard did not play a single minute of El Clasico, though, and Ancelotti has revealed that his decision not to select the Belgian is down to the form of other players in the final third.
"Hazard is ready, but his problem right now is that he has a coach who prefers other players, which can happen in a squad like this one," Ancelotti told reporters.
"The important thing is that he stays motivated and works hard so that he can play again, and he is doing that. His time will come. I'm convinced he'll be back to his best at some point this season. He just needs to put up with this situation for now, as sometimes the coach can prefer other players."
Hazard has provided one assist in eight appearances for Real Madrid this season. body check tags ::