Ancelotti would look to thrash as in the last meeting between the two.
Its just three matches before Barca showdown.
Real Madrid would look to stay five points ahead in the race, though Barca still have a game in hand, with a victory against the Basque's.
Real Madrid thrashed Atletico Bilbao in their last meeting with Cristiano Ronaldo netting a hattrick.
A similar performance can be expected but the circumstances weren't the same, last time they met. The game would be one of the three which Madrid would play before El Clasico.
Real Madrid had a poor start to this tough month with a lame draw against Villareal at home.
Atletico Bilbao are currently at a good stand after reaching the Copa del Rey final where they will meet Luis Enrique's Barcelona.
Earlier, Ancelotti exclaimed that Ronaldo would be his first choice free-kick taker despite failing in 51 atttempts. The last time they two met at Bilbao, Real Madrid were held 1-1 after Ronaldo was sent off.
Real Madrid would possibly lineup in their custom 4-3-3 or 4-4-2 with Casillas, Marcelo, Carvajal, Varane and Pepe all expected to be the backline.
Kroos, Isco and Lucas Silva will be the possible midfield trio and Ronaldo, Bale, Benzema the attacking option.
The game is set to be the first after Real celebrated their 113th anniversary last night.
The match is scheduled to start at 18:00 CET at San Memes, Bilbao.