Carlo Ancelotti
Carlo Ancelotti is happy with Real Madrid's summer overhaulReuters

Real Madrid manager Carlo Ancelotti has claimed he backed all the business decisions made by the club during the summer transfer window – including Angel Di Maria's exit to Manchester United and rejecting the chance to sign Radamel Falcao.

After winning the Champions League and the Copa del Rey last season, the Spanish giants have bolstered the team with James Rodriguez, Toni Kroos, Keylor Navas and Javier 'Chicharito' Hernandez.

But the club have been questioned for letting crucial players Angel Di Maria and Xabi Alonso leave the team along with Alvaro Morata and Diego Lopez – while also opting to sign Hernandez from Manchester United ahead of Falcao.

Real Madrid president Florentino Perez recently claimed they sold Di Maria to United due to the player's high salary demands while he claimed Ancelotti backed the decision against signing Falcao.

"He [Di Maria] had legitimate financial demands that Real Madrid did not satisfy. We did the best offer we could and he did not accept it. None except Cristiano Ronaldo would have earned more than him," Perez said.

"Falcao is a great player and we have considered his arrival, not now but other times. However, we decided against signing him. We also valued the boss's opinion about not signing him."

When questioned during an interview with Il Giornale whether the transfers had been conducted in agreement with him, Ancelotti said: "That's right. All of the decisions have been made in accordance with the coach."

Although the Spanish giants have had a shaky start to the season, the manager insists the squad is very talented and he will manage to get the balance right.

"It took time for us to find the right balance last year and we won the Champions League. I'm sure this year will be no different, we'll find the right solution for Real," Ancelotti said.

"The truth is that Real Madrid are different to most teams, we're a diesel car. My security rests on two pillars: one, a team of professionals who take their jobs very seriously, and two, Cristiano [Ronaldo] scores a goal per game for this team."