The legendary Mexican striker has claimed that the Rojiblancos have long suffered from an inferiority complex when it comes to taking on their illustrious city rivals
The legendary striker, who played for both clubs during his illustrious playing career, is looking forward to Friday night's Copa del Rey final clash between the two sides at Santiago Bernabeu.
However, given los Blancos have not lost a derby in any competition since 1999, he is tipping Jose Mourinho's men to prevail, admitting that Atletico have a serious hang-up when it comes to facing their city rivals.
"The same thing happened when I played there," he told Radio MARCA. "There was a lack of certainty and confidence. The Atleti players should work with psychologists.
"My prediction is 2-1, with a [Radamel] Falcao goal for the Rojiblancos."
Sanchez acknowledged, though, that even if Madrid do lift the Copa, it will not be enough to banish the feeling that the Merengues' season, and indeed Mourinho's spell at the Santiago Bernabeu, have been anything but underwhelming.
"People thought he was going to win them their tenth Champions League, but in the end he can only win the cup," the Mexican pointed out.
"I think that Mou has come through, but more was expected of him. And if Real doesn't win, there will be a lot of tension at the Bernabeu."
Sanchez spent four seasons at the Vicente Calderon before crossing the city divide in 1985 to join Madrid.