Cesare Prandelli's side have drawn both of their games in the tournament so far, and need to beat Republic of Ireland in their final group game on Monday and hope Croatia are beaten by Spain to progress.
Despite leaving it to the last game to assure their passage to the next round, the ex-Chelsea hitman feels the side will make the quarter-finals.
|EVS||Italy are evens with Paddy Power not to qualify from Group C.|
"The Azzurri must believe in qualification," Casiraghi Radio Mana Mana Sport.
"Italy must beat Ireland and then see what the result is in the other game.
"Giovanni Trapattoni's Ireland don't look that good, while Spain are clearly better than Croatia. Spain will play their natural game and both sides will target the win.
"The game against Croatia left a bitter taste in the mouth. However, there is still one match to go and nothing has been compromised," he concluded.
The game against Trapattoni's side kicks off at 20:45CET on Monday.