City were handed a tough Champions League group for the second successive year after they were drawn against Real Madrid, Ajax and Borussia Dortmund, and Dzeko admits that while the group will be exciting to watch, it won't be so great to compete in.
Dzeko told SportSport: "We were in the group of death last season and now we are in it again.
"We really didn't have any luck in Monte Carlo.
"The group will be great to watch, but not so great to play in. But we know what we are capable of and we don't fear anybody."
Manchester City will travel to the Bernabeu to face Real Madrid in their opening match of the competition.