Ferguson knows more than most what it is like to feature in the derby but says there will be no excuses from his side after last night’s 120 minutes and penalty shootout victory against Fenerbahce.
He hopes the team can take confidence from their European display, which saw Rangers progress to the quarter-finals of the UEFA Europa League.
Speaking to the media at this afternoon’s pre-match press conference, he said: “They have got to take confidence, they put out one of the favourites to win the competition. I said after the first leg the game was never over, we were very good over there and last night we were good in the first half but we could be better in the second-half.
“I always want to keep improving but they deserve a huge pat on the back because what they achieved last night was great and I told them afterwards to enjoy these occasions.
"I thought the supporters were brilliant. They were right behind them even when we were 2-0 down people might become a bit frustrated, our heads might go down but that is something we have spoken about as a group, and I never saw the heads go down once."
“In terms of us going 120 minutes, I’m not going to go into Sunday and use that as an excuse. The players are well looked after in terms of sport science, the food and supplements they get.”
When asked how he will feel taking to the touchline on Sunday, he continued: “It is a place that I always liked to play. It is hostile, those were the environments I liked, and I want my players to go and embrace it. These are the games you should look forward to.”
“In my opinion there's still a lot to play for in terms of pride, we have got some huge games coming up, some really tough games and obviously the one on Sunday. You don't get much tougher but as a manager I can't wait to go and sample it for the first time.”
Ferguson says he has been striving to bring a togetherness to the club in recent weeks, he added: “When I walked in that was, I had been looking from the outside and it felt morale was low and that was one of my jobs to get this place bouncing again.
“I feel slowly but surely we are getting there. It is not just about us as a first-team squad, this is a building that has got the women's team in it, it has the Academy in it, laundry staff, kitchen staff. I want everybody to be together.
“That is something I feel has been missing and that is something I am trying to bring together.”