The 30-year-old has largely struggled to impress for Los Blancos since arriving from Chelsea in 2019, contributing just five goals and eight assists in 43 appearances in all competitions.
Hazard's future at the Bernabeu has been called into question in recent weeks, with Real Madrid thought to be open to the idea of selling him during this summer's transfer window.
However, the Belgium international recently ruled out a summer move and now Ancelotti has said that the attacker is firmly in his plans for the 2021-22 campaign.
"[Hazard] is a player who has not fulfilled his full potential but is going to fulfil it. It may be his year to exploit it, with confidence," Ancelotti told reporters.
The former Lille youngster was restricted to just 21 appearances in all competitions last season due to a number of injury problems. body check tags ::