The Scot, who could face the Serbian in the final of the tournament, believes that Djokovic has earned the status of bookmakers' favourite with his past performances.
"I think he is the favourite," The Mirror quotes Murray as saying. "He's the number one player in the world, he's won here before and he has obviously been on very good form since he's been here.
"He's had some tough matches against some very good grass court players in the last couple of rounds in Haas and Berdych and he's won those matches fairly comfortably without too many problems.
"He deserves to be the favourite. He's earned that right with his results in the past."
Murray will take on Jerzy Janowicz for a place in the Wimbledon final on Friday.