Vallejo has returned to preseason training in the Spanish capital, after spending the last 18 months on loan at Granada, following previous loan stints with Wolves, Eintracht Frankfurt and Real Zaragoza.
However, with four years left on his contract at the Estadio Santiago Bernabeu, he could be a hidden weapon for Ancelotti in the coming months.
“I am very focused on the Olympics. When I finish, in principle, I’ll go back to Madrid”, as per reports from Mundo Deportivo.
“I think I am ready to be in the first team. There is a high level to compete at, that is clear.
“But when one reaches the elite of both Real Madrid and the National Team, there is less room at the top.
“That is what motivates me to keep working and improving every day.”
Vallejo has now joined up with the training camp for the Spanish Olympic team ahead of their trip to Japan for the rearranged 2020 Olympic Games in Tokyo.
La Roja face at least three group games in Japan up against Argentina, Egypt and Australia.