Jens Keller's men head into the game after winning their last four games in all competitions, following a poor start that saw them take just one point from their opening three Bundesliga encounters.
Schalke produced an excellent display to beat Steaua Bucharest 3-0 in the Champions League on Wednesday, with Atsuto Uchida, Kevin-Prince Boateng and Draxler finding the net in a comfortable win, and the attacking midfielder thinks they are capable of a shock against Pep Guardiola's side.
"We will see what happens. Everybody definitely has to give their very best - Bayern will be favourite to beat us this weekend," the 20-year-old told reporters.
"But they are coming to our stadium, so I think we have a realistic chance to get a point or maybe even three out of the match."
Boateng echoed Draxler's sentiments, and is hoping to get one over on his brother Jerome, who is likely to feature for Guardiola's side.
"I can just say that we are ready, we are confident and we have the home support. It is going to be a very interesting match," the former AC Milan man commented.
"I mean it is a huge thing for us [him and Jerome] to play against each other at such a high level like this. I am really excited about it. But I hope I will leave the pitch as the winner."