Thibaut Courtois, Eder Militao and David Alaba are long-term absentees for Los Blancos due to ACL injuries, while Ferland Mendy and Eduardo Camavinga remain injury doubts for the club.
Vinicius Junior and Dani Carvajal both made their returns from injury in the 1-0 win over Mallorca on Wednesday, though, and there was also a spot on the bench for Arda Guler.
Ancelotti could hand a debut to Guler from the first whistle, while there could also be a first appearance for 21-year-old centre-back Alvaro Carrillo.
Brahim Diaz and Joselu could feature as the front two, with Guler operating just behind, while Nico Paz and Dani Ceballos are both expected to earn starts in midfield.
Lucas Vazquez should also be introduced at right-back, as Ancelotti will want to be cautious when it comes to Carvajal, who picked up a calf issue before the winter break.
Fran Garcia is likely to keep his spot at left-back, while there should also be a spot in defence for Nacho, who was not available against Mallorca in La Liga due to a suspension.
On-loan Chelsea goalkeeper Kepa Arrizabalaga was struggling with an illness against Mallorca and therefore was not considered for a start, but he could be brought back into the side for this match.
Real Madrid possible starting lineup: Kepa; Vazquez, Nacho, Carrillo, F Garcia; Ceballos, Paz, Modric; Guler; Brahim, Joselu