The Italian jumped to the top of an iconic ranking by guiding Real Madrid to a 3-0 FIFA Intercontinental Cup final win over Mexican side Pachuca.
Kylian Mbappe, Rodrygo and Vinicius Jr scored the goals on the night in the competition that was formerly known as the Club World Cup.
In doing so, Ancelotti claimed his 15th trophy as Real Madrid manager, a new record for arguably the most famous sports team in the world.
He moves ahead of Miguel Munoz who is on 14 from a glory-filled stint from 1960 to 1974.
Ancelotti has worked for Los Blancos during two separate spells, first from 2013 to 2016, and then from 2021 to the present day.
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During his first stint, he did what many had tried and failed before him and won Real's tenth Champions League title in 2014, their first since 2002.
He also lifted the Copa del Rey, UEFA Super Cup and Club World Cup before departing.
Upon his return he added two more Champions League titles, two LaLiga titles, another Copa del Rey, two Spanish Super cups, a pair of UEFA Super Cups, and now a pair of Club World Cups/Intercontinental Cups.
On top of his three European Cups with Madrid, he won a further two previously at AC Milan, with his total of five lifting him clear at the top as the most successful coach in the competition's history. Bob Paisley, Zinedine Zidane and Pep Guardiola are in joint second with three.
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Ancelotti's 2022 LaLiga crown also gave him the unique status as the only coach to have won league titles in Spain, France (Paris Saint-Germain), Italy (Milan), Germany (Bayern Munich) and England (Chelsea).
His double triumph last season saw Ancelotti take home two major individual trophies, the Men's Johan Cruyff Trophy, and on Tuesday night The Best FIFA Men's Coach Award.
The Italian was present for the FIFA award, but failed to turn up to collect the Johan Cruyff Trophy on October 28 as his club boycotted the Ballon d'Or ceremony after learning that forward Vinicius Jr was going to miss out on the main prize to Manchester City's Rodri.
This time around Vinicius beat Rodri to the less glamorous FIFA award, but Ancelotti was at least able to say thanks to those who made him the best coach in the game in 2024.
"Receiving this award is an honor for me," he said. "I would like to thank the FIFA president and FIFA, and share this award with my club. With Florentino Perez, who gave me the opportunity to become the coach of the best club in the world. With the players who don't always listen to me, but almost always. With my family, who always supports me.
"We have a tough job. Football has given me a lot, many positive emotions, but there's been some negativity too. But I'm still alive thanks to sport, and there's a long life ahead."
Despite all of Ancelotti's success, the rumour mill strongly suggests that he will be replaced at the Bernabeu by Xabi Alonso next season.
The former midfielder masterminded an unbeaten domestic season for Bayer Leverkusen in 2023/24, which resulted in their first ever Bundesliga title.
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