Khedira has been out of action since tearing his anterior cruciate ligament while on international duty with Germany last November, an injury that placed the 27-year-old's hopes of featuring at this year's FIFA World Cup in severe doubt.
However, the former Stuttgart man began training again last week, and Ancelotti is confident that he could make a return to action before the end of the club campaign.
"Khedira is training very well, has recovered well," Ancelotti said ahead of Real's UEFA Champions League semi-final first leg with Bayern Munich on Wednesday.
"I feel that he will play again before the end of the (club) season."
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