Leicester are currently 13 points behind the Welsh outfit, whom they play at the Cardiff City Stadium on Tuesday evening.
Schmeichel, who made 14 appearances for Cardiff during a loan spell in the 2007-08 season, believes that Leicester can still clinch automatic promotion.
"We have the players to earn the wins which can still close in on the teams above us, including Cardiff," Wales Online quotes him as saying.
"We are in a decent position and teams above us might be under pressure to keep their spots there. Maybe that can work to our advantage.
"I am hoping we can make a surge, but it is an unpredictable league. We hope some of those teams drop points. We are playing some of those teams, including Cardiff next Tuesday, so we can take points off them."
Meanwhile, Leicester are preparing to face Sheffield Wednesday on Saturday.