Inter have held the bragging rights over their co-tenants in recent times having won the past three Scudetto titles.
And while life under new boss Jose Mourinho is only in its early stages, the signs are good for the Nerazzurri to again push for honours as they lead the table after four games.
AC Milan by contrast have struggled in the recent past.
A fifth-placed finish last season has meant they will have to contend themselves only with UEFA Cup football on the continent while coach Carlo Ancelotti came under fire after the team lost their opening two matches of the season.
The gloom around the club has lifted somewhat in the past week after their 3-1 UEFA Cup win over FC Zurich was followed by back-to-back triumphs in the league.
The most notable of those was a 4-1 victory over the previously unbeaten Lazio at the San Siro last weekend and Zanetti - a veteran of 600 games with Inter - knows better than to underestimate their closest rivals.
"We respect Milan," Zanetti said. "They have grown and it will be a very combative game as all the derby games are.
"We hope that we can do what we are able to do which is to win."
The season is young, yet Inter know they can deliver a psychological blow with a victory that would keep them at the top of Serie A.
Inter moved a point clear at the top following a 1-0 win over Lecce in midweek, with striker Julio Cruz scoring the only goal of the game 11 minutes from time.
"The derby is a special game and we are really eager to be in good form," Cruz said. "We know how much this game means to our fans. We are first in the standings and we want to go out and win this derby."
The expectation level is higher for Milan ahead of the 149th derby since 1929.
Ancelotti has been relieved by his side's improvement during the past week and is in a positive frame of mind ahead of the derby encounter.
"In a week, we have taken many steps forward," admitted Milan coach Carlo Ancelotti.
"We have played many derbies in the past and on many occasions we have come out with a smile."
Portuguese tactician Mourinho, who will experience his first derby having joined Inter this summer, will be hoping his team can level the numbers.
Milan have won four of their past six derbies as hosts, including last season's 2-1 triumph.
Ancelotti will be forced to alter his first-choice striker partnership.
Marco Borriello, who scored the opener in Wednesday's 2-1 win at Reggina, sustained a muscular injury and has been sidelined.
Andriy Shevchenko, who never lived up to his reputation at Chelsea where he played for Mourinho after a lucrative move from Milan, returned to the Rossoneri this summer.
Shevchenko, who has yet to score for the Rossoneri this season, is set to replace Borriello and partner Alexandre Pato up front with Kaka in support.
Mourinho is set to rely on attacking duo Zlatan Ibrahimovic and Cruz to deliver up front.
Inter will be without midfielder Sulley Muntari, who serves his last match ban on Sunday.
by espnstar.com/football/serie-a/news
Derby hero Ronaldinho has dedicated his match winner to AC Milan owner Silvio Berlusconi and the Rossoneri fans.
