"It's not a surprise for me not being the odds-on favorite, I think it's a good sign," Ancelotti told a news conference in Glasgow on the eve of Tuesday's opening Group F game against Celtic.

"I think that last year we had even less probability in the statistics to win it. And we have an improved team this season.

"What happened last year will happen again. We are going to compete until the end and, hopefully, we will compete in the final."

Last season, Real Madrid were considered to be the underdogs during their knockout round matches against Paris St Germain, Chelsea and Manchester City as well as in the final showdown with Liverpool but they went on to win a record-extending 14th European Cup title.

"In this competition, Real Madrid have always been respected. The history of the club is part of the history of this competition," Ancelotti said.

"We start with enthusiasm, as always, but you never know what is going to happen. We have to think about the group stage first, win it and then see what happens after the
World Cup."

Celtic go into the game after a resounding 4-0 win in the Old Firm derby, with momentum building as they have won every game so far this season.

Ange Postecoglou's side have conceded just twice from seven games, scoring 29 goals in the process.

Their first Champions League group stage game since 2017 takes place at Celtic Park on Tuesday, against the current holders.

Leipzig and Shakhtar are the other two teams in Group F.