Manchester United boss Sir Alex Ferguson says Jose Mourinho has turned Real Madrid into serious Champions League contenders.

Ferguson has identified Real Madrid as a threat in Europe's Premier club competition this term as they are now under the guidance of former sparring partner Mourinho.

He told CNN International: "You expect great improvement from Real Madrid under Jose Mourinho.

"Barcelona are still the most attractive team and they will be one of the main dangers with Inter Milan the most difficult to beat.

"They've all got their different qualities, but it's such an exciting tournament, you can't help but look forward to it. The Champions League is the most fantastic competition now."