And he taunted Manchester United by predicting CITY will be big challengers this time.
Chelsea have so far drafted in only £5million midfielder Yossi Benayoun from Liverpool to bolster their squad but are keeping tabs on Torres.
The Spaniard would cost at least £50m but Ancelotti only considers him a bonus.
He said: "We don't need more strikers, we are able to win.
"We are able to defend the title. We have to defend this title. We want to do our best in all the competitions."
Ancelotti, 51, admitted there was nothing he could do to keep England midfielder Cole, whose contract ran out in the summer.
He said: "The problem was economic. It was a problem between the club and Joe Cole, not me. It was not my problem."
Ancelotti admitted he was wary of Manchester City's threat domestically. He said: "They will do better than last season. They have fantastic players and will be an important opponent for us."
But he is also targeting a big prize elsewhere. He said: "Our aim is to do better than the last year in the Champions League. We went out too early last season."
Benayoun had a groin strain for the pre-season date at Crystal Palace on Saturday but Michael Essien returned from a knee injury to net the only goal in Chelsea's win.
Ancelotti let his World Cup players put their feet up after South Africa.
He said: "I will give the right time to rest and recover to be 100 per cent next season."