Liverpool manager Brendan Rodgers said Real Madrid is "probably the best team in the world" ahead of Tuesday's Champions League match, the BBC reports.
Rodgers said he is optimistic of Liverpool's chances despite losing 3-0 last month against Real Madrid.
"I think we showed in the previous game, although the score was 3-0, we can still have moments when we can hurt Real Madrid and that will be the idea," said Rodgers. "We are certainly not coming here as a team expected to lose and then look at the other games as games to qualify."
"They are probably the best team in the world at the moment and we really look forward to big games," added Rodgers.
Real Madrid is in first place in Group B with nine points, while Liverpool is tied for second with Ludogorets and Basel with three points.
After losing 1-0 on Saturday to Newcastle, Liverpool is 4-2-4 and tied for seventh in the Premier League. Rodgers said the team's struggles have been overblown.
Speaking about his side's defence, the Reds' boss said: "It is nowhere near as bad as people make out.
"What has been the frustration has been the mistakes and sloppy goals."
Liverpool forward Daniel Sturridge, who has not played for the club since August due to a hamstring injury, traveled with the team to Madrid.
Liverpool plays at Real Madrid on Tuesday at 2:45 p.m. ET.
- Paul Palladino