The Rossoneri lost on the away goal rule against Werder Bremen.
“Bremen deserved to qualify in spite of the fact that we led for most of the tie,” Ancelotti admitted.
“As the Coach, I am responsible for the result and I will not hide from the blame.
“They played better than us from the beginning in last week’s match and they never let us in the game.
“Now we need to look at the mistakes that we made and to try and improve quickly.
“I am not disappointed with the players because they gave their all, but I am gutted to exit to competition.
“I still don’t feel that my position is up for debate, but we need to achieve our objective of finishing second, even if that won’t be easy.”