Young South African Semenya qualified for tomorrow night's final by winning her semi-final race yesterday evening.
However, despite admitting that Semenya is a "contender" for the top prize, Mutola has warned the 21-year-old that she will face stiff competition in her bid for glory.
"Caster Semenya is one of the contenders," Mutola told BBC Africa.
"Pamela Jelimo from Kenya and the Russians are also very, very capable. I'm looking forward to a good final."
Mutola won gold at the Games in Sydney back in 2000.