The Belgian hopes that the team can mount a serious challenge for the trophy this campaign after the disappointment of falling out at the last 16 stage to Manchester City in August.
"The Champions League is very important for us, it is very special. It is very important to start winning," he said.
"I trust this squad and I think we can win the Champions League. A team like Madrid always start as favourites and we have the quality to win it. "I see the team enthusiastic. We want to win. We are Madrid and we are one of the favourites, not the only one.
"We are focused on all competitions. It is important to do very well in LaLiga and then to do well in the Champions League. Winning LaLiga is very nice and then winning the Champions is always a dream. We want to win both titles."