Neil Lennon insists he would not swap positions with Rangers counterpart Ally McCoist despite his Celtic side trailing by four points.
The gap was established after Celtic surrendered a half-time lead to lose 4-2 to their Glasgow rivals at Ibrox last weekend.
But Rangers were then knocked out of the League Cup by Falkirk in midweek.
"We are in Europe and all the competitions and that's where you want to be at the minute," explained Lennon.
The Celtic manager, whose side defeated Ross County 2-0 to move into the League Cup quarter-finals, stressed that there were many points still to be won in the Scottish Premier League this season.
Rangers, meanwhile, can no longer win a domestic treble and have been knocked out of both the Champions League and Europa League at the qualifying stages.
"The game changes very, very quickly," said Lennon.
"While you are always disappointed to lose a derby game, you have to keep on a level.
"There is no doubt that the lows are lower than the highs are high and we had a job to do on Wednesday, but we came through it okay.
"But we are still chasing in the league and the league is the priority and tomorrow is a very important game."
Lennon, whose side host bottom side Inverness Caledonian Thistle on Saturday, did admit that he would prefer to have a stronger league position as well as still being involved in the Europa League and the domestic cups.
"I would rather be in front in the league and four points is four points," he said.
"It is too early to say what position in comparison we are to Rangers.
"All I know is that we have got important league games coming up before the international break and we would like to win them all."