Real Madrid boss Carlo Ancelotti admits Pep Guardiola's Man City are a 'nightmare' to prepare for ahead of Champions League play-off first leg

Carlo Ancelotti has revealed Manchester City are still giving Real Madrid nightmares ahead of Tuesday’s Champions League play-off first leg at the Etihad.

City have won just eight of their last 23 games in all competitions but Madrid’s manager insisted form goes out of the window in the pre-eminent European rivalry of this era.

Ancelotti also believes the winner will be favourites to lift the title at May’s final in Munich, with either Atletico Madrid or Bayer Leverkusen waiting in the last 16.

‘It seems like it’s a Clasico,’ said the Italian, who has won the competition as a manager a record five times. ‘Whether they are in form or not, City are one of the best teams in Europe. It’s always a headache facing City. They still have the best manager out there. It’s the most difficult game we can face, whether they are in form or not. If you’re not 100 per cent, you won’t get the result.

‘They are the most important rival with the best manager. It’s a nightmare for me preparing against Pep (Guardiola) because he always has ideas that make you think.

‘The team who passes this round has the possibility to go far in the competition. The last three years, whoever won this tie won the Champions League. Maybe it can happen this year as well.’

Ancelotti also believes the winner will be favourites to lift the title at May’s final in Munich

City boss Guardiola admitted he did not know what version of his side would turn up on Tuesday — although he was given injury boosts, with his entire defence and new £50million midfielder Nico Gonzalez training ahead of the tie.

‘Of course it would be good to continue in the competition, for the club, for the prestige,’ Guardiola said. 

‘I like to feel that week by week, month by month, we are there. Before I would feel, yeah, the team is consistent, we can do it. Now I don’t know. 

‘We were unstable this season when we weren’t in the past. Of course we can perform well, I don’t know how we’ll react. This season we’ve struggled a lot.’

Ancelotti — whose superstitious character has the La Liga champions staying in the same Manchester hotel as they did for their penalty shootout win in last season’s quarter-final — suggested the match-up had come too early in UEFA’s revamped format.

The sides meet after disappointing points totals in the 36-team group stage.

‘It surprises me we’re in a play-off,’ the 65-year-old added. ‘It’s our own fault, but it’s a little bit surprising we have to play this game when it could be a semi-final.

‘I’m surprised at City’s season. They had a period where it was difficult to move on with the injuries. But now the team I’ve seen in the last few games is good, competitive as usual. I don’t have doubt about how strong City is.’

Madrid trained at the Etihad Stadium on Monday ahead of Tuesday’s huge play-off first leg

Guardiola has drawn a line under Madrid boycotting October’s Ballon d’Or ceremony, where City midfielder Rodri was crowned the world’s best footballer. But Ancelotti doubled down on the decision in solidarity with runner-up Vinicius Junior — remarks which could add extra spice to the occasion.

‘I don’t think it was the wrong decision,’ Ancelotti said. ‘We didn’t want to participate because we thought Vinicius was the winner.

‘It doesn’t mean we don’t have respect for Rodri, he is fantastic, but we and I thought Rodri deserved to win the year before.’