The Italian, whose appointment was confirmed on Tuesday, following his departure from Ligue 1 champions Paris Saint-Germain, will sign a three-year contract on July 3.
At his presentation, he declared: "This is the most prestigious club in the world and we have to win by playing the most spectacular football because the history and tradition of this club is in playing offensive football, and we're going to work hard to play the football that will make the fans happy."
The former Juventus, Chelsea and AC Milan boss believes everything is in place for his tenure at the Bernabeu to be a success.
"We have been to the training ground - it's fantastic," he said.
"Everything that we need is there. I think this is going to be a very good project.
"I have the support of the club, the president and the fans, so I think this will be a very happy season for Real Madrid."
Club president Florentino Perez outlined why he felt Ancelotti was the right coach for Madrid.
"His style and character fits the profile of this club perfectly," he said.
"He is a proper football man, an intelligent man and a natural winner.
"He is the coach our directors and members wanted the most and he was also the coach I wanted the most."
However, he warned Ancelotti, who has won league titles in Italy, France and England as well as two Champions Leagues, that the pressure to succeed at Real would be unlike anything he has known.
"Ancelotti has experienced the highest amounts of pressure in the most intense dugouts in the world, but he should know that nothing he has experienced will be similar to what awaits him at this club," Perez added.
He also confirmed he had wanted to hire Ancelotti in the past.
"Years ago, I said to him 'You will be my coach', and this day has arrived.
"It was Carlo's dream to coach Real Madrid and that has been completed. The challenge starts here, and here the challenges are always gigantic."