The two teams, who have won the competition six times between them, were drawn against each other on Friday.
"Juventus can eliminate Bayern Munich," Cannavaro told Goal.com.
"It won't be easy, but they can play at the Germans' level. It is the quarter-finals, of course only very good teams can make it this far."
Cannavaro had two spells with Juventus during his 19-year professional career.