The former Blancos striker is eager to see his old club reach the final after four consecutive semi-final appearanes but admits they face a stern task against the holders
Los Blancos were drawn against the current holders in Friday's draw in Nyon, setting up a repeat of the semi-final from 2011-12, which Bayern won on penalties.
After four consecutive semi-final appearances, Butragueno is desperate to see his former side reach the showpiece in Lisbon and conquer Europe a 10th time, but is well aware of the size of the task against Pep Guardiola's German champions.
"What can I say about Bayern, they are an extraordinary organisation, a team of great collective and individual talent and an extraordinary rival for us," he said following the draw. "It's our fourth semi-final and we have our hope, we know that it will be hard but we'll fight until the end.
"I have lot of confidence in the players but it will be extremely tough against Bayern. Of course I hope Real Madrid reach the final and win."
The side meet in the first leg on April 23 at the Santiago Bernabeu, before the second leg takes place in Germany six days later.