WATCH Der Klassiker LIVE on beIN SPORTS | Sign up to take advantage of our 7-day FREE TRIAL here | AU | NZ

Bayern suffered a 2-1 home loss to Inter Milan in its UEFA Champions League quarter-final first leg in midweek, with the return leg taking place in Milan next week.

Dortmund also lost in Europe this week, suffering a heavy 4-0 defeat to Barcelona to all but end its UEFA Champions League run after the first leg.

But Kovac expects to see a reaction from his team and said Bayern could be distracted by its return leg in Italy and having the better chances of advancing.

"Bayern have a tough task ahead of them in Milan, to turn the tie," Kovac said. "In their heads, they may be a bit in Milan, and we will have to take advantage of that in Munich.

"But that can happen only if we are at 100 per cent. If we put in less than 100%, it is difficult to decide the game in our favour."

How to watch Der Klassiker LIVE in Australia

Bayern sits on top of the Bundesliga on 68 points, six clear of second-place Bayer Leverkusen, while Dortmund is eighth on 41, five behind fourth spot, which leads to automatic UEFA Champions League qualification.

Dortmund's form has improved of late, though. It has picked up 12 points from its past six Bundesliga games, winning four of them, with only Bayern (13) and Leverkusen (15) earning more in that period.

The Black and Yellow are also unbeaten in their past four Bundesliga games against league leaders, currently the longest such run of all top-flight teams.

However, Kovac said his team needs to be far sharper than it was against Barcelona if it wants to have any chance in Munich.

"When you play football, you have to work collectively and we did not do that against Barcelona," he added.

"That is what I addressed and what we need to change for tomorrow's game because Bayern also have world-class players. If we don't do that, it will be tough in Munich.

"This is what I demand, and I will demand it [on Saturday] as well."