The former Juventus midfielder is optimistic about his side's chances of making it to the semi-finals of European club football's elite competition
The Spanish champions are one of the favourites to win the competition, but the Brazilian midfielder is hoping the Istanbul club can end Madrid's Champions League ambitions.
"Mission impossible? Not at all. We’ve beaten Manchester [United] too and we went on to knock out Schalke convincingly," Melo told the official Fifa website.
"People are always going to make Real the favourites because they’ve got the best players in the world. I’m not scared, though. If we go out there feeling scared, we’ll end up letting in five, make no mistake. We’re treating them just like we would any other team, and we’re staying grounded, respectful and cautious.
"You also have to remember that the Champions League is unpredictable. Last year Chelsea beat Barcelona with 11 men behind the ball and then overcame Bayern Munich with a weaker team. Anything is possible. You just have to believe."
Wednesday's encounter at the Santiago Bernabeu kicks off at 20:45CET.