Klopp's men are a point behind Bundesliga leaders Bayern Munich heading into Saturday's encounter.
The German coach, whose team suffered a 1-0 loss to Arsenal in the UEFA Champions League on Wednesday, is wary of a Wolfsburg side sitting fifth in the league after three consecutive wins.
"Everyone knows that Wolfsburg have an incredible squad," Klopp said.
"It is quite close in Bundesliga, the gap between a team in crisis and a European campaign is tight. Wolfsburg find themselves in such a good position.
"They are not just good offensively. They are an above-average team of Bundesliga. On their day they can beat every other team, and we will have to cope with that now."
Wolfsburg attacking midfielder Diego has been ruled out of the clash due to a rib injury in a huge blow to the hosts' chances.
Dortmund have injury worries of their own but captain Mats Hummels appears set to return to training.
Polish midfielder Jakub Blaszczykowski may be sidelined after suffering from a virus.
"I have spoken to our doctor. It looks like Mats Hummels will be joining us at training – that's the plan," Klopp said.
"The only in doubt after yesterday's game is Jakub Blaszczykowski, who is suffering with a stomach virus and went to see a doctor today.
"We don't know yet, we will see what happens in two days in Wolfsburg, it is not nice though."
