The Brazil international is likely to be named in the Selecao squad for the tournament in his homeland, and he admitted that the Italians are entering the competition as one of the strongest sides.
"Italy do not have four stars on their shirts by chance," Luiz is quoted as saying on Goal.com.
"Lifting the World Cup four times must be respected. They are going to be a great opponent.
"A Brazil-Italy final? Why not? Just as long as it finishes as it did in 1994 (with us winning on penalties!) Seriously, Italy can get to the final, maybe even win the final."
Italy came through their qualifying campaign unbeaten.