The Spanish capital club reached the knockout stages in the competition after winning all six games during the group phase, becoming only the fifth team to secure a perfect record in the opening stage in the history of the tournament.
Madrid are favoured to progress in the Champions League after a 1-1 draw at CSKA Moscow in the first leg of their Round of 16 tie, and Kaka believes his side can make their mark in the competition.
"We have seen that some big teams are already through," Kaka told AS. "I think that AC Milan and Barcelona have great chances of reaching the final.
"But I think that Madrid have a good chance of doing something big in the Champions League.
"We are confident we can reach the last eight, always respecting CSKA and knowing that they can create us a lot of trouble."
Kaka has formed a solid midfield partnership with Mesut Ozil this season, and he was full of praise for the Germany international.
"It is a pleasure for me to play with Ozil because he is a great player," he explained. "I think it is very easy to play alongside him because he is very smart.
"He knows how to move, we know than when one of us is in a position, the other must take another place, always occupying the spaces on the field.
"So it is very easy to play with him, because he is very smart."
The Brazil international then hailed the impact of Jose Mourinho, but was non-commital when asked if the 49-year-old was the best coach he has ever played under.
"He is surely one of the best coaches I have ever had," Kaka added. "I learn a little bit with every coach.
"I have been learning a lot with Mourinho, so I think he is surely one of the best coaches I have played under."
Madrid host CSKA on Wednesday at 20.45CET.
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