Both sides met in the group stages, fighting out a 1-1 draw, with Chile taking the lead through Alexis Sanchez.
Chile showed their penalty shoot-out pedigree again in the Kazan semi, as goalkeeper Claudio Bravo saved all three Portugal spot-kicks after it finished goalless after extra-time.
The 3-0 win over Spain was taken as evidence that Brazil would be firm favourites for a World Cup held in their home nation but Fred looked back with anguish and warned Sunday's finalists not to get too confident.
Youth takes on experience on Sunday in the Confederations Cup championship match.
In the last five matches of Germany, they won four games in which three in FIFA Confederations Cup against Mexico, Cameroon, and Australia and one in UEFA World Cup Qualifying against San Marino.
The final is the second meeting between the two countries in the competition after they first clashed in the group stage. "We will do everything possible (to win)".
Germany: How will they cope with the red fighters? Viewers in the United States can tune in to Fox Sports 1 USA and Telemundo. Germany are noted experts after 90 minutes, but this Chilean team have claimed back-to-back South American championships (both against Argentina) from the spot.
"Right now you have a certain euphoric mood in the country with the winning of that title but the most important thing is to look forward - we need to measure ourselves against those calibre of players like [Cristiano] Ronaldo, [Lionel] Messi, Kroos and the others", he said.
It could be a third title in as many years for Chile, who won the Copa America in both 2015 and 2016, beating Argentina both times.
'We have proven our value on the pitch.
"The fans call them 'plushki' in Russia, which is a small cake", he explained.
"We have the same objective as we have had in the last two and a half years - to play for the win in every game".
It's not a complete shock that we've stumbled upon Germany and Chile in the final, but it will surely be a contest worth watching.
When they lost the ball, Germany controlled the midfield and Chile lost their fluidity.
Competition organisers in St Petersburg have picked a striking location for the city's fan park during this competition.
Chile, with Alexis Sanchez and Arturo Vidal, will more than likely provide a sterner test for these young guns, and it will give Low an opportunity to see if they have the mettle required when coming up against a more experienced and talented side in Sunday's final.
It's worth reflecting for a minute on the immensity of riches at Low's disposal. So perhaps it's more appropriate to think in terms of a side on the cusp of making history with its golden generation vs. a group who know the best is yet to come, and this could be the beginning of a cycle, rather than the latter stages of it.
"I am very glad that we are playing against Chile". Almost 1,500 people will be involved - performers, musicians and dancers from different cities - and spectators will be treated to a mix of classic and modern dance, pantomime, circus acts and hip hop. The 21-year-old has built on a stellar Bundesliga season with three goals to his name so far in Russia, with his skills inside the 18-yard area besting numerous opposition defences.