Bundesliga champions and leaders Bayern welcome Dortmund to Allianz Arena for Saturday's blockbuster showdown.
Former Bayern star Salihamidzic – winner of six Bundesliga titles and the Champions League among other honours – is bullish about the Bavarian club.
"It is a good condition that the team is in good shape now and that's important," Salihamidzic told Omnisport.
"In January we didn't know which way the journey will go but our team did it very well. They played a lot of good games and were intoxicated by their playing style.
"I have no fear and looking optimistic on the next games and the next months."
Carlo Ancelotti has carried on where Pep Guardiola left off, with Bayern dominating in Bundesliga and preparing for a Champions League quarter-final against Real Madrid.
The Italian boss, however, has done so with his own style and calmness.
"I think the coach has put his own coolness on the team," the 40-year-old Salihamidzic said.
"Our guys absorbed it and if u looked on them they are cool but if it is the key time they are very focused. And that's why we could look forward to the next months."