Daniel Ricciardo feels Red Bull Racing stands a good chance of taking the fight to Mercedes at the Hungarian Grand Prix this weekend based on the team's form in Monaco earlier in the year.

The Australian started on pole position and led for much of the Monaco Grand Prix in May as Red Bull's proved a match for Mercedes in a high downforce configuration.

Though the Hungaroring represents a sterner challenge for Red Bull to repeat that pace, the tight and twisty nature of the resurfaced circuit is such that rivals have predicted Ricciardo and Max Verstappen could be the drivers to beat.

Indeed, Ricciardo - who won the Hungarian Grand Prix in 2014 - feels Red Bull stands a strong chance of at least a podium but he admits he is aiming higher.

"I wouldn't say it is impossible," he said. "I think we definitely have a good chance at a podium. That is first thing we will set our sights on. And then we will see. Hopefully somewhere higher on the podium, but I think realistically we can be really close to Mercedes and Ferrari here.

"Looking at the layout of Monaco and all that, they have had the track resurfaced, whether that helps anyone in particular or not, who knows. But we should be competitive."