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.

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.

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.