The Rossoneri is currently languishing in 15th place in the fledgling Serie A table with head coach
Ancelotti signed Milan stars
But Inzaghi promptly returned to the San Siro in a coaching capacity and Ancelotti has backed the retired striker to play a key role in reversing Milan's fortunes.
The 53-year-old, who won one Scudetto and two UEFA Champions League trophies during his eight years in charge of
"We often speak on the telephone and he's highly motivated.
"The important thing is that he can still think like a player as well as like a coach, the rest will come with experience.
"I often speak with (Milan vice-president)
"In any case, they need to stop using the departures as an excuse and instead use them as a springboard.
"Sure, they don't have the quality of last season, but no-one would have thought they'd lose three games from their first four in the league.
"You can take a few preventative measures against a difficult season, when you've made a lot of changes, but I never expected a Milan like this."
Despite its disappointing start to the season, Milan can take heart from some spirited performances from youngsters
Ancelotti added: "The hardcore of the team is failing and so now it's important that the new players bring the atmosphere back (to the San Siro).
"Sometimes losing important players can spur a team on to find new ways of playing.
"They just need to stay strong and be confident.
"They can't risk throwing everything away while times are bad - they just need to stay united and weather the storm."
Napoli president Aurelio De Laurentiis insists there is 'nothing official yet' regarding its hunt for a coach amid widespread speculation Rafael Benitez will be the new man in the hotseat.