Former Real Madrid midfielder Xabi Alonso rates them as favourites for the Champions League.
The Basque spoke to reporters and indicated that Real are always favourites and will return to be champion of Europe.
"They're always favourites for everything, but more so in the Champions League," he said.
"I'm happy because they've regained the level they like to play at.
"They're a bigger favourite than Manchester City because City haven't won anything yet."
Whether or not Los Blancos do retain the Champions League for a third straight year, Alonso believes Zinedine Zidane should be in charge of his own destiny.
"Zidane has earned the right to decide what he wants to do about his future after what he has won," he added.