Schubert watched his side lose 4-0 at the Etihad in September and believes Pep Guardiola’s arrival will take the Blues to the next level in European competition.
"Man City showed what a good side they are in their last few games and their win against FC Barcelona wasn't surprising. Because they are both amongst the top teams in Europe,” said the BMG manager.
"City have a very good squad. They press very high from the first minute but we learned our lessons from our first game.
"It is an important game for us. Every competition is equally important and we will have to give it our all to have a chance of beating them on Wednesday evening."
Monchengladbach have slipped to 13th in the Bundesliga and need to beat City to keep their hopes of making it to the Round of 16 alive.
With no wins in six in the league, Schubert admitted he was feeling the pressure of the poor run, but is confident his team can turn their fortunes around.
“As a manager, I know that sometimes things can get difficult,” he said "It is always difficult and stressful to play three times in seven days.
"We want the boys to put on a good performance tomorrow. After the disappointing loss against Cologne at the weekend, we have to try and build ourselves back up as a team.
"But the most important thing is the players keep their confidence."