Atletico Madrid secured their first Spanish league title in 18 years in 2013-14 when they finished three points ahead of Barcelona and Real Madrid, the first time a team other than the big two had won La Liga since Valencia a decade earlier.
Athletic Bilbao were fourth, a further 17 points behind, and Sevilla fifth, with Valencia finishing down in eighth, 41 points adrift of Atletico, and missing out on a place in European competition for 2014-15.
This season, both Valencia and Sevilla, who won the Europa League last term, have made bright starts to their La Liga campaigns and are second and third respectively after seven matches, with Real fourth and Atletico fifth.
"Valencia are not playing in Europe and it's a new team with a new coach, a lot of motivation at the moment and supporters who are pushing them hard," Ancelotti said in an interview with Real's television channel on Thursday.
"Sevilla are more used to success as they performed very well last season," added the Italian.
"They can both be in the fight, although I don't know how long they will sustain it. I think La Liga will be more competitive than last season,” he said.
Valencia are in the process of being taken over by Singapore-based billionaire Peter Lim and hopes are high the club can put years of financial woes behind them when they were forced to sell their best players to stay afloat.
New coach Nuno appears to have found the right formula to get the best out of his players and the likes of new Spain recruit Paco Alcacer and Brazilian goalkeeper Diego Alves have been in excellent form.
Sevilla, with the intense Unai Emery still at the helm, have built on last term's success in continental competition, although a 4-0 reverse at Atletico last month was a setback.
Ancelotti also looked ahead to the La Liga 'Clasico' at home to Barca on October 25 and said Real's arch-rivals appeared to have improved from last term when they failed to win major silverware for the first time in six years.

They have a new coach in Luis Enrique and made several high-profile signings in the close season, including forward Luis Suarez, midfielder Ivan Rakitic and goalkeeper Claudio Bravo.
Uruguay striker Suarez could make his debut against Real at the Bernabeu as it falls the day after his four-month ban for biting an opponent at the World Cup expires.
Barca are unbeaten in their seven La Liga matches and have not conceded a single goal, while prolific forwards Lionel Messi and Neymar have netted seven and six goals respectively.
"I see a (Barca) team that is more motivated because they did not do things well last season," Ancelotti said.
"Luis Enrique has come in and for sure he is full of desire and very excited,” he added.
"New players have arrived and a new Neymar. I think they are more competitive that last year,” he further said.

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