The Three Lions have been handed a favourable route in Russia, knowing that victory over Sweden this weekend will set up a semi-final against either Russia or Croatia.
Brazil have a trickier draw, as one of France or Uruguay await should they see off Belgium at the Kazan Arena on Friday evening.
Matthaus cannot see past an England vs. Brazil final on July 15, telling German outlet Bild: "I expect Brazil versus England in the final, because France and Belgium are on the same side of the draw as Brazil and these teams will knock each other out.
"[England] have a young squad with a high culture of playing football, with a lot of speed and a great striker like Harry Kane. Their trust in their own abilities seems to be huge. The team is fearless and also benefits from the great coaches who work with them in the Premier League."
Matthaus skippered West Germany to World Cup glory at Italia '90 - one of a joint-record five World Cups that he competed in.