Roberto Mancini's side failed to make it out of the group stage in last year's competition but Toure believes that the team need to continue to improve after lifting the Premier League in May.
"We need to go further and win the Champions League to get the respect of other clubs," the 29-year-old said. "We need to win a couple of cups.
"It will be tough but I have a lot of confidence in the squad. We were missing the experience last time in the Champions League. Now we have some of that experience and the right mentality."
City collected their first trophy of the season with a 3-2 victory over Chelsea in the Community Shield on Sunday.