"Mourinho has revived the winning spirit of Real Madrid," the Arles-Avignon defender told BBC.
"They have not been doing things right for the last few years but Mourinho has got them fighting for trophies again, among the four best teams in Europe," he continued.
Pavon lifted the Champions League trophy with the Spanish giants back in 2001-02 playing alongside modern greats Zinedine Zidane, Ronaldo, Luis Figo, Roberto Carlos and Raul.
His time at the Bernebeu ended on a sour note however, as Fabio Capello relegated him to the bench for much of the 2006-07 campaign.
Despite being abruptly offloaded the following year, Pavon said his connection with the club remained strong.
"I still have friends at the club, like Iker Casillas and Sergio Ramos, who I played with during my time there. They are all delighted with the manager because he is very direct. He tells them what he likes and what he doesn't like to their face. He doesn't tell you one thing while he is thinking something else. Every player wants a coach like that."
Returning to the upcoming Champions League showdown, Pavon was unabashed in his views.
"For me, they are the two best teams in the world, for their quality, their history and many things besides.
"I don't think there should be any hatred there [between the fans]. Real Madrid would not be Real Madrid if Barcelona didn't exist and vice versa. They drive each other to new levels," he concluded.
