Their first loss in 23 games, albeit it was a friendly, the Blancos boss remains adamant that Tuesday's defeat takes nothing away from his team's wonderful year.

La Liga giants Real Madrid tasted defeat for the first time in 23 games on Tuesday, albeit it was a friendly match, as Los Blancos succumbed to a 4-2 loss to AC Milan in the Dubai Challenge Cup.

Despite a 35th minute goal from Portuguese ace Cristiano Ronaldo and a late consolation strike from Karim Benzema from a spot kick, a brace from Italian striker Stephan El Shaarawy inspired the Rossoneri to an impressive victory over Les Merengues, with Jeremy Menez and Giampaolo Pazzini also making the score sheet.

Ancelotti, who will now have to ready his side for a tricky test away to Valencia on Sunday when La Liga resumes, aiming to maintain their unbeaten run in competitive games, insisted the loss to Filippo Inzaghi’s crew “doesn’t hurt”.

The Italian manager said: "This defeat doesn't hurt, not at all. We've had a week of preparation. Physically we were good. It's allowed us to get our rhythm back after a week off. We did what we needed to. An effort in which everyone had their 45 minutes. Now we have a day to rest and then two to get ready for the game in Mestalla."

AC Milan lifted the Dubai Challenge Cup on Tuesday after beating Real Madrid 4-2

Stephan El Shaarawy, AC Milan, Real Madrid, Dubai Cup Challenge

The 10-time Champions League winners will head into the New Year on the back of defeat, but when asked whether it was a bad note to end 2014, Carlo responded with:

 "No, we're happy at the end of this wonderful year. It's good for Milan who played well, we didn't and that's that. It can't be said that this defeat changes what we did this year, of course not. We've had good news from Valdebebas, where Ramos and Marcelo trained, they're fine."