Carlo Ancelotti is confident he will remain in charge of Real Madrid next season, despite his team's eight point deficit on Barcelona at the top of La Liga, he said Friday.

Los Blancos host rivals Atletico Madrid in a derby clash on Saturday, where they will try to cut the gap on the Catalans.

Madrid president Florentino Perez has not always shown patience with coaches but after the team's 5-2 Champions League last 16 first leg win over Liverpool this week, Ancelotti was relaxed.

"I think (I will stay), I am quite calm," Ancelotti, whose Madrid contract expires in June 2024, told a news conference.

"I don't have to renew my contract, it's there. I have to do just one thing, to win games."

Madrid historically have valued European success higher than domestic achievements, as record 14 time European Cup winners.

In the past decade they have lifted the Champions League trophy five times, winning La Liga just three times in the same period.

By contrast, rivals Barcelona won the Champions League in 2015 but have struggled in Europe ever since, suffering Europa League elimination on Thursday.

"Everyone knows how important the Champions League is to this club, but that does not mean we will not fight for everything, La Liga too," continued Ancelotti.

"We will put all our energy into that, I don't know the answer to (why Madrid are more successful in Europe)."

Ancelotti says despite putting one foot in the Champions League quarter-finals, he was not content with how everything has gone so far this season.

"I wanted to arrive at this moment with the eight point advantage (in the league), win the Spanish Super Cup and win 5-0 at Anfield," said Ancelotti.

"So we haven't been perfect. Jokes aside, I think we're doing well. We had absences in January that cost us six points, but that was predictable (given the calendar)."