Carlo Ancelotti has identified Xabi Alonso’s return from injury as the key to Real Madrid’s improved form of the past few weeks.

Midfielder Alonso underwent an operation on his groin over the summer and returned as a substitute in a 7-3 home win over Sevilla at the end of October, since which Madrid have earned plaudits for their improved style of football.

According to Ancelotti, much of that is down to the 33-year-old, someone the Italian says reminds him a lot of himself during his playing days and for whom age is no barrier.

“I can say that Xabi Alonso has been the key to this. He is a very important player for this team and his quality and experience is vital,” Ancelotti told esRadio.

“He has the ability to see the bigger picture and I can see a lot of myself in him, although if I had to compare us then his quality of pass is better. He’s slow like me but is technically superior and doesn’t have a problem with age.

“Take [Andrea] Pirlo, who is similar. At 35 he is still doing well and in their position age doesn’t matter, yet for others it could. At right-back, for example, you need to be right physically and in peak condition.

“In the middle it is more about skill, intelligence, tactical know-how and is not as physical,” explained the 54-year-old.

Ancelotti insisted he is not concerned about Alonso penning a new deal at the Santiago Bernabeu, with his existing contract due to expire in June 2014.

“I believe everybody knows how important it is but I’m not concerned, although it would make a great Christmas present for me if Xabi renewed,” he admitted.

Xabi Alonso may reportedly feel the effects of a perforated eardrum for up to two months, but it will not see him miss any matches for Real Madrid.

The 32-year-old suffered the issue after being caught by Jeremy Mathieu midway through the second half of Madrid’s eventual 3-2 win at Valencia on Sunday night.

Madrid have posted only that the complaint, which prevented Alonso from flying back to the Spanish capital with his teammates the same evening, is awaiting developments.

Marca, suggest, however, that those developments are that the player will be alright to return to training and then playing as otherwise expected, but that he will have ‘aches and pains for a stipulated period of between one and two months’. AS suggest his recovery will last between three and four weeks.

Real Madrid are almost resigned to the fact that they will lose Xabi Alonso in the summer, according to reports.

Marca claim that the hierarchy at Los Blancos are ’90 per cent sure’ that the midfielder will not sign a new deal at Santiago Bernabeu.

The Spain international’s current deal ends in June 2014, and despite the club attempting furiously to keep Alonso, the 32-year-old is expected to leave on a Bosman in the summer.

The former Liverpool man has been linked with a move back to Anfield, but reports also suggest that Manchester United and Juventus are keen.

And the Madrid-based paper have revealed quotes from inside the club, saying: “We have neither spoken about money, nor seasons, nor anything, as there have been no negotiations.”

Xabi Alonso has made a dramatic u-turn regarding his Real Madrid future, and will now sign a new contract according to Marca.

The Madrid-based sports daily has claimed that the midfielder mulled over the decision last night, and has asked his agent Inaki Ibanez to begin negotiations on a new contract.

Los Blancos have attempted to tie the Spain international to a new deal for almost six months now – with his current contract set to end in June 2014.

Reports on Friday suggested that the former Liverpool man had decided to leave Santiago Bernabeu.

But Marca have insisted on Saturday that Alonso will now sit down with President Florentino Perez and discuss terms.

Talks on a new deal won't begin until after January 6.

The issues up for discussion will be the length of the contract and his wage packet. The 32-year-old will want a minimum two-year extension, with a possible optional third year related to his performances and fitness. As for the financials, a salary of around €7 million a season is likely.