Ricken, who is now director of youth development at Dortmund, was speaking following Friday's draw, which also saw Bayern Munich paired with Barcelona in the other semi-final.
"It has been 15 years since we were in the semi-finals of the Champions League. It shows the development of the team," Ricken told Uefa.com.
"We have already proved we can beat Real Madrid this season, and that is why we are strongly hoping we can reach the final of the Champions League again.
"We also want some kind of revenge, because in 1998 we met them in the semi-finals and lost. Well, I wouldn't really say revenge, but we want to prove ourselves."
Coach Klopp echoed Ricken's sentiments, stating that Madrid are "the only team left in the competition we have already beaten this season".
Meanwhile, Madrid's director of football Emilio Butragueno spoke of his respect for Dortmund ahead of the mouth-watering clash.
"We have a lot of respect for Borussia Dortmund," he said.
"We played them twice but didn't manage to beat them. This time we hope it will be different as we want to be in the final – that's what we are all dreaming about.
"We know their potential and how difficult it will be to stop them. It's a great motivation for us all – there is one step left to reach the final that we at Madrid have been waiting for for several years."