Madrid could only watch on helplessly last season as Barca emphatically replaced them as top dogs in Spain after becoming the nation's first team to win the treble of Primera Division, Copa del Rey and European Cup.

Barca's success combined with their own failures - which saw them knocked out of the Champions League at the last-16 stage for the fifth successive year and also suffer a humiliating early Copa del Rey exit to third division Real Union - will have hurt Madrid badly, but the club are taking radical steps to ensure it is a different story next season.

With Florentino Perez back as president, Madrid have already secured the services of Kaka for £56million from AC Milan, while a world-record £80million offer for Cristiano Ronaldo has been accepted by Manchester United.

More big-name signings are also in the pipeline as the Spanish giants undergo a major overhaul of their squad, and Guti feels all that will be creating some concern at the Nou Camp.

"They must be frightened because we are building a great team," he said.

"They are in a privileged position, but they know that next season Madrid will be up there with them and not only are we going to fight for titles at a national level, but also at a European level.

"We know that Barcelona have won everything, they have a good team and great players. But we have to get ourselves, at least, to their level. It could be that they are currently a step ahead of us.

"We are making a team to fight for the Champions League. It's complicated to win the three titles but I think we have our possibilities. What Barcelona have done is difficult, but we can also achieve it.

"The fact the final of the Champions League is being played at the Bernabeu is an added motivation."

Although Kaka is the only confirmed new arrival so far, it seems only a matter of time before he is joined by Ronaldo.

The fee agreed for the Portugal international has created plenty of debate and no little criticism as it comes in the midst of a current global financial climate.

When asked his thoughts on Ronaldo's price tag, Guti told Marca: "Every player is worth what he shows and what is paid for him. Cristiano Ronaldo has not shown that he is one of the best, but that he is the best in the world.

"He's a player who was on the market and a club as big as Real Madrid can pay these figures."

Ronaldo's impending transfer has also created a huge media maelstrom, and Madrid can expect that to continue well into the new season if, as expected, the FIFA world player of the year completes his transfer.

Guti insists many of the squad are well used to that though, having lived through something similar when David Beckham was at the Bernabeu.

"We've already experienced it with Beckham. You have to assume that this is going to happen and have a very cool head," added Guti, who hopes Ronaldo is able to deal with what is likely to be increased media pressure.

"I've been hounded by the press. This is the bad thing about being a public figure. That is the life. But Cristiano is a great professional and (Madrid fitness coach) Valter Di Salvo has spoken very well of him to me.

"He's told me that he is the first to arrive to training and the last to leave."

Regarding his own future at Madrid, Guti added: "I hope to be here until 2011. (Then) I would like to play in England if there are offers and if I feel good physically. There's also the possibility of going to another country like Saudi Arabia."