Recent defeats to Barcelona and Sevilla have left Los Blancos in third spot in the table with seven games of the season remaining.
However, former Los Blancos attacker Figo is still confident that Carlo Ancelotti's side can secure the title.
"Yes, I think Real have the chance of winning the league title, but they have to react, as two consecutive defeats are quite a blow. Nobody can doubt the team's quality," he told Marca.
Figo represented Madrid between 2000 and 2005.