Paulo Fonseca has urged patience as he looks to build his Milan squad, with Sunday's derby clash against Inter next up.

The Portuguese coach is under mounting pressure following a disappointing start to the season.

A 3-1 home defeat to Liverpool in the Champions League on Tuesday has compounded the scrutiny, putting Fonseca's position in jeopardy.

In Serie A, Milan have garnered five points from four matches, scoring nine goals but conceding six, with defending champions Inter having eight points ahead of the Derby della Madonnina.

"There's frustration at the moment but there is also the conviction of wanting to get out of this situation. I have confidence in the team," Fonseca told reporters on Saturday.

"In the past few days, they've worked fantastically. Strong players arrived during the transfer window and we have leaders here but we're still not a strong side.

"We need time but I'm not looking for excuses."

Fonseca praised Liverpool's performance in Milan's last game, and suggested the Reds are a team his Milan side are aspiring to replicate.

"Liverpool is a good example of a team. They conceded after three minutes but they didn’t change,” he said.

"What I want is to see my players have the same confidence. Nothing must change if we make a mistake or we concede a goal.

"This is the self-confidence I want to see in my players. They can do the same and Liverpool are a great example of that."

Milan enter the derby with a poor record, having lost their last six matches against Inter.

"For us, it's an important and difficult match. We'll be up against a very good side but we need to think positively; a win would be worth a lot," Fonseca said.

"We've prepared for the match based on our opponents, who are strong, but we want to play according to our principles. We'll need to mark better and score more than them," he said.