Both teams - unbeaten this season - played out a 0-0 draw at the Parc des Princes last time, leaving them with seven points from three matches, and Tuesday's winner will be highly likely to top a group also featuring Shakthar Donetsk and Malmo.
"We respect our opponent but we are ambitious and have come here to impose our game. We have the technical and physical resources to get the win," Blanc told a news conference on Monday.
"They were better than us with possession and played faster in Paris. Tomorrow's match will be different. Real Madrid were well organised and showed a good defence in Paris. We didn't reach their level but our game was solid."
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PSG welcome back centre back David Luiz but they will be without Argentine Javier Pastore, who was ruled out with conjunctivitis, and Marquinhos who has a thigh problem.
"We still have some injury problems but Madrid are in the same situation. A 0-0 draw won't be enough," said Blanc, referring to Real's slightly better goal difference.
Blanc, however, played down the importance of a possible victory in Madrid.
"It would be a privilege to beat Real Madrid but it wouldn't mean anything for the future," he said.
"Last year we defeated Barcelona in the group stage and didn't reach the semi-finals."
PSG were knocked out in the quarter-finals of the Champions League in the last three editions.
(Writing by Julien Pretot in Paris; Editing by Mark Meadows)
