By FOX Sports staff
Dortmund fell to a 2-1 derby defeat to Schalke in their last outing last Saturday in the Bundesliga, a result which saw them fall 20 points behind leaders Bayern Munich.
Already, it seems as though they will need a miracle if they are to retain the league title, leaving the Champions League as their main hope for silverware this season.
Nonetheless, Watzke believes their prospects of continental glory will soon be over if they fail to improve on their display against Schalke at the weekend.
"If we play the way we did in Gelsenkirchen in the first half, there is no way we will go further in the Champions League," he told Bild.
"If we play like we did against [Shakhtar] Donetsk [in the Champions League Round of 16], we will win more league matches and find our form again."
Dortmund will be looking to get back to winning ways on Saturday when they entertain Freiburg in the league.