The Rossoneri went into last weekend with a four-point advantage in hand but they were held to a controversial 1-1 draw by Catania in Sicily on Saturday. This allowed the Bianconeri to move to within striking distance after a 3-0 victory over Napoli in Turin the following evening.
As a result, former Juve coach Lippi believes that with eight rounds of the season remaining, it is very much a case of everything to play for.
"We are talking about a league that wasn't over before the weekend but that will be even better now," the 63-year-old Italian told reporters on Monday.
"Milan and Juve must strive to win all their games and from here until the end of the season, they will fight [for the title] point by point."
Lippi also heaped praise on Bianconeri boss Antonio Conte for transforming the Old Lady into title challengers after his arrival from Siena last summer.
"Conte is realising a dream by coaching Juventus," the former Italy coach said. "In the past there was [Giovanni] Trapattoni, then Lippi and now we are hoping that this is the start of Conte's era."
Turning his attention to AC Milan's Champions League quarter-final second-leg meeting with Barcelona on Tuesday night, Lippi admitted that he, like everyone else, is anticipating an enthralling contest.
"I expect a game of a very high standard and Milan will need a big performance," he argued.
Lippi, who enjoyed two separate stints in charge of Juve, has been out of the game since stepping down as Italy boss in 2010.
AC MILAN IN ACTION
|SPOLLI 57'||REFEREE: M. BERGONZI||34' ROBINHO|