Speaking after the German Super Cup victory against Borussia Dortmund the striker said that Bayern were not at full capacity yet, but he had every hope they would challenge for the Bundesliga and Champions League titles.
Goalkeeper Sven Ulreich, deputising for the injured Manuel Neuer, was the hero for Bayern with penalty saves from Sebastian Rode and Marc Bartra after a 2-2 draw in regulation time at Signal Iduna Park.
American 18-year-old forward Christian Pulisic fired Dortmund ahead in the 12th minute when he robbed Javi Martinez and steered the ball past Ulreich, moments after Robert Lewandowski fired over the bar at the other end.
But Ancelotti said he was "proud" of his side's effort as the Bundesliga champions twice coming from behind to secure the win.
Bayern's Carlo Ancelotti says a decision on Renato Sanches' future will be made before September.
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"We turned in a very good display. When the season starts, we will be there".
"We started the game very well, then we lost the thread, but we really moved through to the halfway point", the Turkey worldwide told Dortmund's official website.
"If we do that better, it will be hard for Bayern Munich; if we lose the ball so often, we put more pressure on ourselves". Unfortunately we conceded two goals, we weren't attentive then.
"We were in the lead three times, even in the penalty shoot-out. We have to continue in this manner".
Ulreich added: "Of course, I'm pleased to have helped the team in a penalty shootout and win a title".