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It has been a season of mixed fortunes for the German forward since he arrived from RB Leipzig for a reported £47.5 million.
He initially struggled to make an impression under Frank Lampard, scoring just twice in his first six Premier League games, but he soon found his feet in Europe, netting against Rennes, FK Krasnodar and Real Madrid in their Champions League-winning campaign.
The 25-year-old, who ended up scoring 12 times in 40 games for the Blues, has improved under Thomas Tuchel of late, and he reportedly has a suitor in Ancelotti, who has just been appointed as Real Madrid manager after leaving Everton.
The Italian is looking to rebuild his Los Blancos squad ahead of the new campaign and, according to Spanish publication Fichajes, Ancelotti has pinpointed Werner as a potential addition to the team alongside Houssem Aouar and the returning Gareth Bale.
Ancelotti is reportedly a big fan of his versatility to play on the wing.
And with Madrid having recorded a reported gross debt of €901 million in recent times, the Spanish club believe they can capture the Germany international for a cheaper price than the £47.5 million paid by Chelsea last summer.
Whether Chelsea will want to cash in on Werner is unknown, but former Blues midfielder Cesc Fabregas believes the striker will be a 'different player' next season.
In his column for The Daily Telegraph, he wrote: "I watch every single Chelsea game, so I've followed the first seasons of the club's two big German signings, Kai Havertz and Timo Werner, very closely and I am convinced next season we will start to really see the best of them.
"As a midfielder who likes to make assists, I have played behind strikers before who are going through a bad time or suffering with their confidence.
"It's a bit of both that it can be frustrating that they miss chances, but I would also be thinking at some time Werner will score."
Fabregas continued, saying: "The most important thing is that he keeps making the runs, that his timing is good, that he's not offside and with his speed he will always get chances.
"Players like Werner are so valuable nowadays because players want the ball at their feet a lot and, as a midfielder, you would like this type of player to run on to your passes.
"Football is so much about confidence and what's in your head and especially strikers who depend so much on scoring or not scoring. If they miss, it's when you need to support them the most."
Read my exclusive @TelegraphSport Euros column: The real 'N'Golinho' Kante, verdict on Werner and holding my loved ones tighter after Eriksen https://t.co/S43sloRiBz
- Cesc Fàbregas Soler (@cesc4official) June 14, 2021
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