By ESPNSTAR.com staff
The Biancocelesti have enjoyed a strong start to the campaign and are currently third in the league, four points behind joint-leaders Juventus and Napoli.
However, the same cannot be said for Milan who are 11th after picking up just seven points from their opening seven games, and desperately need a win against Lazio.
While he admits the Rossoneri will still pose a threat on Saturday, Petkovic is confident his charges can come out on top.
"I always consider my own team as the favourites," he told La Gazzetta dello Sport.
"However, we must realise Milan are more of a threat than the league table suggests, even though their injury problems favour us.
"Lazio must improve and learn how to react to difficult situations. We have to play at a high level for the full 90 minutes."
The 49-year-old was also quick to dismiss suggestions his side were genuine contenders for the title, and insists he will only entertain such thoughts after the halfway stage of the campaign.
"It's too early to talk about the Scudetto," Petkovic added. "There's still a lot of football to be played.
"We'll have to wait till Christmas to see whether we can challenge for the title."
Lazio are also competing in the Europa League this season and are currently top of Group J after picking up four points from their opening two games.