The Double winners confirmed on Thursday that the 54-year-old would be leaving the club with immediate effect.
Wilkins had begun his career with Chelsea in 1973 and went on to play for the likes of Manchester United, AC Milan, Rangers and QPR.
The former England midfielder was in his second stint as part of the coaching team at Stamford Bridge having been part of the backroom staff under Gianluca Vialli, before returning in September 2008 under Luiz Felipe Scolari after spells at Watford and Millwall.
Wilkins' contract was up for renewal and Ancelotti stressed it was the club's decision not to renew his deal.
"I want to say one thing - Ray was a fantastic assistant coach," he said.
"I want to say thanks to him because he was a fantastic support last season and this season.
"He did a fantastic job and helped me and all the team to win the double, so the first thing is to say a lot of thanks to him.
"He is my friend, I have a fantastic relationship with him and I will have a fantastic relationship with him.
"He knew English football very well and has a lot of experience as assistant. His job he did very well.
"The club made this decision," added the Italian, who took charge before the start of last season.
"I think it was a difficult decision for everyone but I have respect for this decision. I have trust in all the staff working with me, and now we have to move on.
"We have to look forward, stay focused on the next game because it is an important season for us and it is important to move on.
"I spoke with the players to tell them the club made the decision, but as I said before, we have to move on and stay focused. The players are in focus and will continue to stay focused."
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