Bayern currently lead Group A after beating Villarreal 2-0 in their opening match, while City and Napoli are on one point apiece after playing out a 1-1 draw in Manchester.
But despite the Bundesliga outfit's impressive start to their European campaign, Dzeko, who has played against Bayern before during his time with Wolfsburg, believes City have nothing to fear.
"They [Bayern] have a home game and are the favourites," Dzeko told Kicker. "However, I do not think Bayern are stronger than us.
"We travel to Munich to take something."
Dzeko's prolific record in the Bundesliga, where he scored 66 goals in 111 games for Wolfsburg, saw a host of clubs linked with his signature before he signed for City, including Bayern.
Nonetheless, the Bosnia international has confirmed he was never close to moving to the Allianz Arena.
"No, there was never anything concrete from Bayern. I'm glad with how it went.
"I feel very comfortable in Manchester, playing in the Champions League and the best league in the world [the Barclays Premier League]."
Dzeko made a slow start to life in English football, netting only two goals in 15 Premier League appearances last term.
However, he has since returned to his free-scoring best, and has already bagged six goals in five league games this season.