Published: 2017-03-14 20:17:32 BdST
City, who have struggled to translate their domestic success on to the European stage in recent years, were eliminated in the semi-finals by Real Madrid last year but De Bruyne is hoping to go at least one step further this term.
"I think we can reach the final, but of course the other teams will think the same. And that doesn't make it easier," the 25-year-old told British media.
"It will be very tough against Monaco, they are doing extremely well at the moment, but we are very positive and if we beat them we are through to the quarter-finals, after which the final is not that far away."
De Bruyne also felt that City must improve their performances in high-pressure games if they hope to be fighting for some of the most prestigious trophies on a regular basis.
"I think it was important as a team to make the next step. City have had a difficult time in Europe, which is new for this club, but last year we did great in the Champions League," the Belgian added.
"When you play at the highest level, you're always playing in big matches whether it's in the Premier League, the cups, the Champions League or at international level."