Pirates will host Chippa in the Telkom Knockout last-16 at Orlando Stadium on Saturday - a week before meeting arch-rivals Kaizer Chiefs in the league at FNB Stadium.
While the Derby is South Africa's marquee domestic fixture, 'Micho' says the Sea Robbers, who have not won a trophy in over four years, have to focus on the immediate task at hand.
Sredojevic said: "With due respect to the Derby, yes, it is the biggest match of the season. We know what it means when the country is at a standstill, but we have no right to think beyond Chippa United.
"We want to give respect to Chippa United, self-respect to ourselves, special respect to the game of football. That's why we are totally focused on the Chippa United game."
Much is expected of Pirates this season after they finished as runners-up to Mamelodi Sundowns in the Absa Premiership last term.
Having missed out on the MTN8 this campaign after being booted out in the first round by losing finalists SuperSport United, Micho hopes they can placate The Ghost via the TKO.
"In every competition we are in we are coming with the highest possible ambition to go all the way to win," said the Serbian.
"This is the identity of this club which I am blessed to be the head coach.
"All of us in the technical team, the players with the support of management and the supporters, we are working hard to achieve what we are looking for."