Third place now main target for Milan
Milan blew a two-goal lead as they were held 2-2 at home to crash out of the competition on away goals on Thursday after the first leg in Germany ended 1-1.
The seven-times European champions are also out of the Italian Cup and third in Serie A, 11 points behind leaders Inter Milan, which means a top-three finish to guarantee direct entry to next season's Champions League is now the top priority.
"Certainly, it is not much, but it's an important objective. Playing in the Champions League is extremely important for us," he told Sky television.
"We have to concentrate on this and try to do things better than we have up to now."
Despite mounting pressure, he does not think he has come to the end of the line at the club.
"Raising this issue is premature," he replied when asked if his job was in danger. "We have to finish the season as best we can, and then assess things, but I don't think there will be any problems for the future."
Ancelotti, Serie A's longest serving manager having been appointed in 2001, led Milan to European Cup triumphs in 2003 and 2007 but has captured only one Serie A title in 2004.