Asencio's rise has come amid defensive struggles for Real Madrid, where he has started alongside Antonio Rüdiger, helping secure three consecutive clean sheets.
Ancelotti praised Asencio's maturity and calmness, saying, 'He is never worried, you never see him afraid, he is very confident.'
Despite interest from the City Football Group, Asencio chose to remain with Real Madrid, believing in his opportunity to break into the first team.
With his current contract set until 2026, Madrid is expected to offer Asencio an extension and pay rise at the season's end.
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