The former Cagliari tactician has stated that the Turin club have the squad to compete for the title this season after making an impressive start to the campaign
The champions are currently 12th in the table, and come up against Antonio Conte's high-flying side in search of a win that would propel them up the league.
The trip to Juventus' new stadium will be Milan's first and Allegri is hoping his men can earn a positive result, despite their lengthy injury list.
"Juventus are a new squad who are doing well and can certainly do even better," Allegri told reporters in his press conference.
"We're playing a team that will fight to the end for the Scudetto. Juventus will also be highly motivated and can count on support of the home crowd in their wonderful new stadium.
"It's great to see a stadium without barriers, as that represents a step forward for Italian football."
Milan will be without Gennaro Gattuso, Alexandre Pato, Robinho and Massimo Ambrosini for the encounter, but are hoping to welcome back Kevin-Prince Boateng for Sunday's game.
"At the moment we are still coming back together, because we had so many injuries. Tomorrow will hopefully be the last game with so many players out, as they should return after the break for international duty," he added.
The game will also be the first time Andrea Pirlo comes up against Milan for Juventus since his summer switch from the San Siro.
"Andrea is a champion and is doing well, as he plays for a team that makes the most of his qualities. If we leave him space to play, then we'll be making it easier for him and the strikers," Alegri said.
The tactician concluded his press conference with a few words of praise for his opposite number, Conte.
"I am impressed with the coach Antonio Conte as he is pushing forward his ideas of football," he added.
When the two teams met last season in Turin, Milan snatched a vital away victory courtesy of Gattuso's 68th minute goal.