The veteran striker is on loan from Bournemouth until the end of the season when his contract expires.
He is already eyeing a permanent switch but has trophies on his sights before then.
Speaking to talkSPORT, Defoe revealed why he thinks Rangers, who currently sit top of the league, are capable of ending Celtic's dominance.
He said: "We’re confident. We have to be. When I sit in the changing room and I look at the players who are beside me you have to be confident. There is a lot of internationals and a lot of young players who are hungry, we've got a good mix.
"I don't want to talk too much and you have to respect everyone in the league, you have to respect Celtic but if we continue what we’re doing and the lads keep working hard in training and keep listening to the managers and the coaches then with the spirit we’ve got at the club now it’s only a matter of time before we achieve something special. But it's important we keep our head down and keep working hard."
Having played for Tottenham Hotspur, Sunderland and Portsmouth as well as picking up 57 England caps, the 37-year-old is thriving in Glasgow.
He wants to finish his career having written his name into the club's history books.
"I would be happy to finish there and hopefully achieve something special because the fans deserve it," he said.
"The demands of that football club, the history of that football club and when you walk down the tunnel, on the left hand side you can see all the legends on the wall and I always say to the lads, 'if we achieve something special our names will be there' and we can come back as old men and you look on that wall and your name is there and nobody can take that away from you. We have to put the hard work in.
He added, when asked if he loved the club: "100 per cent. I’m not just saying it because you need to, I think you can tell to be honest by how it is gone. It’s just an amazing football club. I’ve always known Rangers are a massive club and I just feel blessed at the back end of my career to get a chance to play for a massive club like that is really special."