Valencia were humiliated by the Blancos 6-3 at Mestalla towards the tail end of last season and Emery is keen to avoid another drubbing.
"Whoever isn't convinced that we can win should stay away and report to training on Monday," the coach stated during a press conference on Friday.
"We can compete with them and can beat them if we have a good game. We are also in excellent form. It's an important game in which a win would mean three points but also a lot of additional motivation.
"We would be a point off the leaders if we were to win tomorrow. Let's hope that the fans help us out," he stated.
Despite having faith in his side's abilities, Emery was full of praise for Jose Mourinho's team.
"Madrid are the toughest rival out there at the moment - above any other team in the world.
"They are on a good run of results and performances. They are doing better in the standings than last year and they have a strong rivalry going on with Barcelona. It would be great to beat them," he concluded.
Valencia are currently in third place and sit four points behind Madrid at the top of the Liga table.
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