Bale has missed Real's last four matches after being an unused substitute in their 5-0 victory at Levante on October 18.
Ancelotti's men have been in fine form despite Bale's injury, winning all four of those games while scoring 14 goals, the Italian is sure to be happy to be able to welcome the Welshman back into contention for Liverpool's visit to the Santiago Bernabeu on Tuesday.
Victory over the Premier League club would guarantee Real's place in the last 16 of the Champions League, and Ancelotti has plenty to ponder ahead of the Group B fixture.
"Bale is fine, Fabio [Coentrao], Jese and [Dani] Carvajal are not available. [Asier] Illarramendi and [Sami] Khedira aren't either, but Bale is alright," he said on Monday.
"I will decide [on Bale's] presence in the starting line-up tomorrow.
"My only doubt is whether to put Bale on from the start and also whether to rest a few of the players who have accumulated a lot of games. I'll decide tomorrow."
Tuesday's match could also see Cristiano Ronaldo make yet more history, as he is just one adrift of Real icon Raul's all-time Champions League goalscoring record.
Ballon d'Or holder Ronaldo scored in Real's 3-0 win at Anfield last month to take him to 70 goals in Europe's premier club competition, but Ancelotti claims the Portuguese is focused solely on his side's bid to seal qualification from their pool.
"He's not thinking about Raul's record," Ancelotti continued.
"Yes, of course he could beat it tomorrow but this isn't his last Champions League game - he is thinking only about the team.
"I always have to talk about Cristiano and it’s getting hard for me to find new things to say about him, he is such a fantastic player."
