The Toffees’ hopes of making it to the next stage of the competition was crashed by two late goals from the visitors.
Both teams kept each other at bay for the vast majority of the game and the match was certainly heading for a stalemate until striker Edinson Cavani ‘s curling effort beat Robin Olsen in the 88th minute.
The Toffees were searching for an equalizer deep into injury time but were caught on the break by Manchester United’s sharp counterattack which was later converted by Anthony Martial.
Speaking to the media after the game, Ancelotti insisted his side did enough to win the game.
"We did enough to win - good performance we needed to defend which we did well but more in the second half,” the Italian coach said.
“We had a difficult start but after 20 minutes the game was under control - we didn't play enough attacking football but we had to defend and until the last 20 minutes we did that well.
"They had more control, better quality so the game was to defend well which we did we had some opportunities on the counter-attack but that was the game that we planned.
"We left the position in midfield open too much and after that [Edinson] Cavani's quality showed and scored a fantastic goal."
He added "If you have regrets we are more disappointed, we don't need to have regrets because the team preformed well, sacrificed, worked hard and yes we lost but we look forward to the next game."