Favre's men currently sit eighth in Bundesliga and are preparing for their trip to the Allianz Arena to face the Bundesliga table-toppers, a challenge the 55-year-old believes will be exceptionally difficult.
"For me, besides Barcelona and Borussia Dortmund, they [Bayern Munich] are among the best teams in Europe at the moment, if not the world," the Swiss trainer told reporters.
|9/2||Franck Ribery is 9/2 with Bet365 to score first when Bayern meet Gladbach tonight
"They have a great chance to redeem the championship title from Dortmund again this season," he added.
Meanwhile, sporting director Max Eberl is confident of a good result, despite having to miss out on the services of Spanish defender Alvaro Dominguez, who is banned for a fifth yellow card.
"We must give everything to annoy the Bavarians once again. We are a tough team to beat," he warned.
However, Die Roten's tactician Jupp Heynckes is also looking for success this weekend, hoping to expand their 11-point lead over second-placed Bayer Leverkusen.
"We want to end this year's campaign in positive fashion. We want to continue our run, our form and our good display," he said.
Monchengladbach versus Bayern Munich kicks off tonight at 20.30CET.