The Old Firm duo navigated their way to the Scottish Cup semi-finals following weekend victories and will meet at Hampden Park next month in a highly anticipated clash.
Celtic will head in to the tie as favourites, yet they are not exactly having the best of seasons under Ronny Deila as an early European exit and an inconsistent league campaign has prompted questions to be asked.
Warburton, however, feels Celtic have a decent squad full of internationals and remarked that while his Rangers side are in good shape, they are under no illusion of the challenge ahead.
"Celtic are top of the league, they have had European competition for the last number of years and they have a squad full of international players. We are very respectful of that," the former Brentford boss told reporters.
"We are not under any illusion about the quality of Celtic. But right now, we are in good shape as well. We are performing well and doing what we have to do."
Celtic and Rangers met in the League Cup last year with Deila’s men running out 2-0 winners.
Gers have undoubtedly improved since then under the guidance of Warburton, and they are on course for promotion and a return to regular league meetings with their rivals for the first time since 2012.
It will be a fascinating game without doubt, and one that second tier leaders Rangers will relish as they seek to challenge Celtic to Scotland’s top honours once more.