Real Madrid is celebrating its return to good form despite placing low in the Champions League and failing to avoid a possible playoff against Manchester City.

Real Madrid hope to avoid Manchester City in the next round, manager Carlo Ancelotti said after they beat Brest 3-0 on Wednesday to reach the Champions League playoff where they will be seeded.

The UEFA Champions League's first-ever league phase came to a dramatic close on Wednesday, setting up for an equally entertaining knockout stage that begins in two weeks' time. The introduction of the new format means the Champions League will introduce a new phase of competition in February when 16 teams will take part in the knockout round playoffs.