However, Ferguson believes that his side will face their sternest test yet at the Bernabeu tomorrow night.
"Our team is capable of winning the Champions League. There's a great spirit about them," the Scot told reporters.
"The reality is that this team doesn't know when it's beaten, which is a great quality. The acid test is tomorrow and we have to get through it if we are to win this trophy."
Ferguson also confirmed that, apart from Paul Scholes, he has a fully fit squad to select from for the encounter.