Unbeaten Los Blancos will enter this weekend's fixture top of La Liga on 33 points - six points clear of second-placed Barcelona, who have drawn their last two games in Spain's top flight.
Vazquez has revealed that Real Madrid are "very confident" ahead of the fixture and will look to "take a major step towards the La Liga title" with all three points.
"We go into the Clasico in very good form, we are top of the table and in very good shape. We are very confident and raring to go to claim the three points," Vazquez told reporters.
"We are in a good position, but there are still over 20 matches to go. As a team, we have to continue in the same vein as we look to extend our unbeaten run. Let's hope that we pick up a good result at Camp Nou.
"If we win it will see us take a major step towards the La Liga title, but it is the most consistent side that wins the league and not whoever comes out on top in the Barca versus Madrid game."
Vazquez is expected to continue in the Real Madrid XI due to the absence of Gareth Bale.