Real Madrid manager Carlo Ancelotti says his side "have to be worried" following defeat by AC Milan at the Santiago Bernabeu.

Madrid have fallen to back-to-back home defeats and have lost two of their first four games in the Champions League.

Vinicius Junior’s penalty equalised for Madrid after Malick Thiaw’s opener, but strikes from Alvaro Morata and Tijjani Reijnders secured a deserved victory for Milan.

Madrid have now lost their past two games after being beaten by rivals Barcelona 4-0 in El Clasico, who they now trail by nine points in La Liga.

And Ancelotti’s reigning European champions have only six points from four games in the Champions League, following their defeat at Lille in October.

"We have to be worried, the team's not giving a good account of itself," said Ancelotti.

"We have to be more compact, more organised, we've let in a lot of goals. We're not well organised on the pitch and we have to work on that."

Milan have also had a mixed start to the season - they only had one win from their first three Champions League games and are seventh in Serie A, eight points behind leaders Napoli.

But an impressive display in Madrid was praised by their manager Paulo Fonseca.

"The players came here with courage, they didn't have any fear," the Portuguese coach said.

"In the first half we created plenty and in the second half we were on the back foot, but we fought together. We definitely deserved to win."