Big-spending PSG went into their clash knowing they needed to beat Lorient and hoping Montpellier slipped up at Auxerre in order to lift the league trophy.
And although Ancelotti's men kept their side of the bargain with a 2-1 win, Montpellier's triumph by the same scoreline handed them the crown.
Nevertheless, while Ancelotti was clearly downbeat, he was quick to pay tribute to his players' efforts as well as Montpellier's success.
"I'm disappointed because we did not win the title but the team did a great job this season, even though we struggled in some games," said the Italian.
"I'm happy with the professionalism of the players and proud of our season.
"Montpellier have had a great season, PSG also, and it's nice to be in the Champions League.
"Another story starts for the club, we must prepare for next season and work this year will be important in this regard."
Following their victory over Lorient, PSG president Nasser Al-Khelaifi visited the dressing room.
Ancelotti added: "He said he was pleased with the season of the team and thanked all players for their work.
"They, naturally, were not happy because we cannot be when we finish second. But they did everything we needed, they should be proud of their championship."
Ancelotti, who replaced Antoine Kombouare when PSG were top of the league in January, still takes plenty of positives from the season.
"I used the six months to know the team, the club and Ligue 1, which will be useful for next season," he added.
"Next year I will have more pressure to win the title but the team will be better. We have time to look at what happened and prepare for the upcoming season.
"We will also soon have a meeting with leaders to discuss all that. "