The South American nation are currently in action against Germany, with the score 0-0 after 57 minutes.
Simeone, who made 106 appearances for Argentina between 1988 and 2002, believes that penalties will ultimately decide the outcome.
"Argentina will win the World Cup against Germany, but they will do so with excitement and penalties, as I predicted against the Netherlands," he told Ole.
"I talked with friends before the game against the Netherlands and I told them I was convinced Argentina would win on penalties. They said I was crazy.
"The final is 50-50. Germany are a solid and organised team, but you can take advantage of their high defensive line with speed and [Lionel] Messi and [Gonzalo] Higuain are going to be crucial on the break. It's going to be difficult but from a supporter's perspective, I have no doubt Argentina will win on penalties."
Argentina beat Netherlands on penalties in the semi-finals.