The Signal Iduna Park side triumphed over los Blancos in the group stages this season and the former Mainz coach is optimistic ahead of the club's final four encounter.
The two sides met in the group stage, when BVB triumphed in Germany before being only just held to a draw in Spain, and the former Mainz boss is optimistic ahead of the final four meeting.
"I am glad we know our opponent now," he told reporters after the draw in Nyon. "Now football will be played. I do not have to stress that Real Madrid are difficult opponents, but out of the three we could have got, they are the only ones we have already beaten this year."
Sporting director Michael Zorc added that he is excited by facing los Blancos again, but admitted that he would have preferred to play the first leg away from home.
"It is a good draw. We are slight underdogs in this time, but we already beat them this season. We gained lots of respect back then. Those will be two highlight matches. But we obviously wished to play the second leg at home," Zorc said.
Meanwhile, Hans-Joachim Waktze, Dortmund's CEO, took a snipe at Bayern Munich president Uli Hoeness, who had suggested that BVB would be the best draw in the semi-finals.
"We're happy with the draw. We wanted foreign opposition. I'm sorry that Uli Hoeness' wish to play us did not come true," he said.
He added, "Playing away from home in the second leg will not be decisive. If we have a good first leg, we will get our space in the second leg. From now on, we only have things to win. I don't think Madrid will be scared after the group matches, but they will have respect and so do we."