Bayern added the Bundesliga title and domestic cup to their trophy cabinet as well last term and are currently unbeaten in 10 matches under new boss Pep Guardiola.
However Pellegrini, whose side lost 3-2 to Aston Villa on Saturday, believes he can mastermind a win over the all-conquering Germans.
“I always expect a big response,” he said. “I know that Bayern is a very strong team but we’re also in a good moment and hopefully we can get the three points here.
“We started well in the Champions League and it is important for us to continue, beginning at home with the most difficult team of the group.
“The last match we didn’t win, but I am sure they will play at the right level. We know how to do it.”
Midfielder David Silva has been included in the squad after five games out with a thigh injury. While striker Sergio Aguero, who missed the weekend defeat to Villa, is also ready to return.