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MILAN vs PALERMO live French Cup
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Palermo go into the encounter against the Serie A leaders on the back of five straight defeats.
However, Milan's last league victory at Palermo was in February 2006.
Allegri said: "Saturday's game is important.
"We face a very difficult game because Palermo has great technical qualities in midfield and in attack.
"You have the likes of (Fabrizio) Miccoli, (Javier) Pastore, (Abel) Hernandez.
"Our rivals have lost their last five league games and that means we will have to be even more careful."
Milan missed a chance to extend their lead at the top of the standings last weekend when being held to a 1-1 draw by bottom side Bari - Inter had drawn their match at Brescia.