The former France boss is wary of the quality possessed by the newly-promoted side and says they will proved a sterner test than their clash with Olympiakos on Tuesday
Claudio Ranieri's side have taken 13 points from their first five league matches after bringing in the likes of Radamel Falcao, James Rodriguez and Joao Moutinho over the summer.
PSG, meanwhile, have won three league games in a row after drawing their opening two and ran out 4-1 victors at Olympiakos in their Champions League opener on Tuesday.
"The closer the match, the more excitement will rise, it will be an interesting encounter to play for both teams," Blanc told reporters at a press conference.
"Monaco will want to win, they are one of the best teams. The speed with which they found that cohesion is impressive. They recruited great players like Falcao, (Eric) Abidal, (Ricardo) Carvalho.
"I saw them against Marseille, and they played a good match. When there are good players, it does not necessarily mean you have to wait several years to get results."
Blanc went on to say that his players had not returned to training until Friday after their exertions in Greece, but he expects the squad to be fully fit for the crucial match.
"It was not an easy thing to play a Champions League game in midweek," the 47-year-old added. "But we knew that (would be the case) from the beginning of the season.
"We have the ability to recover, because we play Sunday evening. We were prepared according to these criteria, but it is a good thing to have won, even if it is a different competition with a different opponent.
"It is always better to prepare to win, alhough I think Monaco is stronger than Olympiakos."