Atletico head into the encounter five points above their city rivals and two ahead of Barcelona, who defeated Osasuna 2-0 on Saturday, but the Rojiblancos still have another game in hand on their title chasers.
Simeone’s side looked to be in a commanding lead at one stage but dropped points, against Celta Vigo and twice against Levante in recent weeks, have seen their rivals breathing down their neck.
"It's a really beautiful championship and all the important teams are seeking the best positions in the table," Simeone said ahead of the encounter.
"It's a top-of-the-table game, a direct game between two teams fighting for similar positions, but they're three points. There's still a long way to go in LaLiga and we'll try to take the game where we want so we can cause some damage.
"A few games ago, we were talking about a league where Real Madrid and Barcelona had no chance, and look where they are now. We know how difficult this championship is."
Real Madrid defeated Atletico 2-0 in the corresponding fixture back in December.
