The Germany international is refusing to think about the Real Madrid boss' claims that they are Champions League favourites and is taking the competition one step at a time
Jurgen Klopp's men emerged from a group containing los Blancos, Manchester City and Ajax unbeaten and in top spot, and have been touted as frontrunners for the competition this season.
Among their admirers is the former Chelsea manager but, although the 20-year-old admitted to being flattered, he is trying to remain grounded.
"Okay, it shows they have a lot of respect. But many candidates are being named [favourites], we shouldn't pay attention to that," the 20-year-old told Kicker.
"If someone had told us before that we will be first in this tough group, no one would have believed it. We want to progress [to the quarter-finals], let's see what happens."
Despite their fine continental form, BVB have struggled in the Bundesliga, and Gotze feels has voiced his frustration with their domestic performances.
"Maybe we weren't as focused in the league. It's not that we played terribly. It was annoying to drop points in games like the one against Wolfsburg. That just didn't go well for us."
Dortmund return to Bundesliga action with a trip to Werder Bremen on January 19.