Los Blancos had to settle for second spot in the table in 2010-11, but currently sit first with a three-point lead over Barcelona and Albelda feels that the capital-city side are looking good to win their first title since 2008.
"Real Madrid have had the bad luck that they had to deal with a superb Barcelona in recent years. However, I see them as the favourites to win the Spanish league title and even the Champions League this term," Albelda was quoted as saying by EFE.
The 34-year-old backed the influence of the leaders' Portuguese coach as the reason behind their current success.
"The current Madrid are a very balanced team because of Jose Mourinho's football philosophy. They are enjoying their best time since the arrival of Mourinho," the veteran added.
Albelda was speaking ahead of his side's tricky Saturday fixture at home to Madrid, who will be aiming to repeat the 6-3 win they recorded at Mestalla last term.
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