Power systems rely on ancillary services (ASs) to ensure system security and stability. Until recently, only the conventional power generation resources connected to the transmission grids were allowed to provide these ASs managed by the transmission system operators (TSOs), while distribution system operators (DSOs) had a more passive role, focused on guaranteeing distribution capacity to bring power to final consumers with enough quality. Now, with the decarbonization, digitalization and decentralization processes of the electrical networks, the growing integration of distributed energy resources (DERs) in distribution grids are displacing conventional generation and increasing the complexity of distribution networks’ operation, requiring the implementation of new active and coordinated management strategies between TSOs and DSOs. In this context, DERs are becoming potential new sources of flexibility for both TSOs and DSOs in helping to manage the power system. This paper proposes a systematic characterization of both traditional and potentially new ASs for TSOs, and newly expected DSO local system services to support the new distribution grid operation paradigm, reviewing, in addition, the main TSO-DSO coordination mechanisms.