Real Madrid director of football Arrigo Sacchi says the club still has a long way to go before it can be regarded as one of Europe’s finest.

“The strongest clubs in Europe at the moment are Juventus and Chelsea. You may or may not like their football but they have a clearly defined approach to the game,” Sacchi told sports daily Marca on Thursday.

“We are at a crucial moment, just coming out of a grey patch. We haven’t established our shape yet, and are still adapting to changes in the squad.”

Four coaches and no trophies in the last two seasons represent a drought for a club of Real’s standing but Sacchi believes there are reasons to be optimistic for the future.

“The potential of the side is enormous and the individual talents of the players are undoubted, but they don’t always perform as a team,” Sacchi continued.

“Vanderlei Luxemburgo is working hard to improve this, and the spirit within the squad. Raul or Michel Salgado said the other day Madrid’s biggest rival is itself.”

Three consecutive league wins have taken them to third in the table, two points behind leaders Getafe.

“We have to be realistic with our objectives for the season but I have complete faith in the squad and we could yet spring a surprise,” said Sacchi.

Sacchi signed out the contribution of David Beckham who has flourished since returning to a role on the right wing.

“The more he plays the better he gets,” Sacchi said of Beckham.

“I don’t see him as a specialist. There may be players who are better than him technically, but he performs to such a high standard in his all round game, and there is not much more you can ask of a player.”