The fixture at the Parc des Princes sees the reigning champions host their fellow big-spending outfit, with both sides yet to taste defeat so far this season.
Monaco have taken 13 points from their first five league matches after bringing in the likes of Radamel Falcao, James Rodriguez and Joao Moutinho following their promotion from Ligue 2 last term.
PSG, meanwhile, have won three top-flight games in a row after drawing their opening two and ran out 4-1 victors at Olympiacos in their UEFA Champions League opener on Tuesday.
And Blanc feels his team are well prepared for the challenge posed by Claudio Ranieri's men.
"The closer the match, the more excitement will rise, it will be an interesting encounter to play for both teams," he said.
"Monaco will want to win, they are one of the best teams. The speed with which they found that cohesion is impressive. They recruited great players with Falcao, (Eric) Abidal, (Ricardo) Carvalho.
"I saw them against Marseille, and they played a good match. When there are good players, it does not necessarily have to wait several years to get results."
Blanc went on to say that his players had not returned to training until Friday after their exertions in Greece, but he expects the squad to be fully fit for the crucial match.
"It was not an easy thing to play a Champions League game in midweek," the former France coach added. "But we knew that (would be the case) from the beginning of the season.
"We have the ability to recover, because we play Sunday evening. We were prepared according to these criteria, but it is a good thing to have won, even if it is a different competition with a different opponent.
"It is always better to prepare to win, alhough I think Monaco is stronger than Olympiacos."
