The Argentina international, who played for the Bavarian outfit between 2003 and 2010, is set to feature at the Allianz Arena for the first time since leaving the German club.
Demichelis, who was not part of the City lineup that was defeated at the Etihad Stadium in October, says the side does not fear Bayern and is hopeful of upsetting the German champion.
When asked if City was targeting revenge, the 32-year-old replied: "Yes. A lot can happen in football. It's 11 vs 11.
"It's very difficult to win here [at the Allianz], but we have to try to do that. We're playing against the best team in the Champions League, but we also have a very good squad with a lot of very good players. Right from the start, we have to try to do our best and try to score a goal."
City boss Manuel Pellegrini led Malaga to the Champions League quarterfinals last season and Villarreal to the semis in 2006, and Demichelis, who worked with the Chilean at River Plate and on the south coast of Spain, is convinced he can replicate that success in Manchester.
"I think Manuel has shown with Malaga what he can achieve and with Villarreal what he can achieve," he continued.
"He has shown what he can do in the Champions League. I think now we're on a really good path. We're growing every game, every week, every month. We have a great future ahead of us with Manuel and with the club."