The Chilean says he has a strong squad of players capable of beating any other side in Europe - including the star - studded Clasico duoManuel Pellegrini says Manchester City are not afraid of facing either Barcelona or Real Madrid in the knockout stages of the Champions League. The Chilean’s side have qualified from their group but look set to finish second behind reigning champions Bayern Munich, whom they play in their final fixture. However, Pellegrini says his side will be confident whomever they are drawn to face in the last 16 and believes other teams will not want to face City. " I’m not afraid of who we are going to play in the next round. We have a strong squad. All of them would not be happy to play against us, " the former Malaga boss told reporters. " Spain has strong teams, Barcelona and Real Madrid especially, but also Atletico Madrid are having a very good season. " But I’m not afraid of who we are going to play in the next round. It’s not a major problem. Anything can happen in two games. We have a strong squad. " People might say it’s difficult for us to play against Barcelona, Real Madrid, Atletico - or Paris Saint - Germain are another team we could face. But all of them would not be happy to play against us. " This season is the first time City have qualified for the knockout stages of Europe ' s premier club cup competition but Pellegrini feels they can beat anyone. " I trust this squad a lot so I hope they can continue in the Champions League, " he added. “It’s important to be strong mentally. Also it’s important to be a winning, ambitious team. " Mixing good players with ambition is the best way to try to win. Of course, these are teams are beatable. They are strong teams and have worked for a lot of years. " This club is just starting to think and to work as a big team, bringing in very good players. It has a very important history, but in the last four years they have been trying to have the power to fight with the most important clubs. " We are going the right way and I’m absolutely sure we can beat any other team. The most important thing is to have the right mentality. " The players must feel they can do important things, have the ambition to win. Not only in the Premier League, but also in the Champions League and Capital One Cup. These players should have targets. "