The Scottish champions are aiming to reach the knockout stages of the Champions League for a third successive campaign and even improve on their last-16 status of the last two seasons.

A fourth consecutive Clydesdale Bank Premier League title is also a top priority for Gordon Strachan's men, who are preparing to be tested to the full as they attempt to compete both at home and abroad.

The biggest challenge for domestic honours will come in the shape of bitter rivals Rangers, whose own early exit from the European stage means they have no distractions this time around as they bid to end Celtic's stranglehold on the Scottish game.

In stark contrast, the Ibrox side challenged for four trophies last year before collapsing at the end of the campaign and missing out on both the UEFA Cup and the SPL championship within a matter of days.

However, McDonald - top goalscorer last term with 31 goals - sees no reason why Celtic should suffer a similar fate if they embark on an extended run in the Champions League.

"We made the last 16 of the Champions League last year and we came through that okay, and I can't see it being any different this year," he said.

"I think it's all a psychological thing and I think that with everything Rangers had last year, they played a lot of games near the end of the season.

"Whereas in the Champions League, if we were to qualify again, it would be two games at a time so I don't think it would be as many games anyway.

"But we've got the squad more than capable to handle it."

Celtic open their Champions League campaign with the visit of Danish champions Aalborg tomorrow night.

And, although keen to maintain their excellent record at Celtic Park, McDonald admits there is also a desire to improve upon their woeful form on the road.

"Every game is a must-win, the home games especially," he said.

"I think that's where we've been strong in the last couple of years and that's got us through to the next stages of the Champions League.

"We don't want to rely on that but it would be nice to get off to a good start at home."

The Australian striker admits Aalborg are still something of an unknown quality ahead of their arrival in Glasgow later today.

"We don't know too much about Aalborg at the moment," he told Sky Sports.

"But I'm sure as it gets closer the manager will make sure we get a good look at them."