The three-time World Cup champions go into the game having eliminated the South Americans in the quarter-finals of the past two World Cups in 2006 and 2010.
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"I want them to finally bring the World Cup back after 24 years of waiting," the 49-year-old told reporters.
"I think they're ready for it. I think they have the quality to win it.
"But, still, you've got to find ways and you can't concede a goal against a very dangerous Argentina side so you have to respect them.
"Looking from the outside, Germany are favourites."
Germany and Argentina have met in two previous finals, with a Diego Maradona-inspired Albiceleste winning 3-2 in 1986 before losing 1-0 in the 1990 final in Italy.
"Germany-Argentina is a very special final because of the history," said Klinsmann, who came up against Germany in Group G at Brazil 2014 as USA head coach.
"I think, in both finals, the better team won. In 1986, Argentina with Maradona, had the better side, and in 1990, when I had the pleasure to be part of that team, we were clearly the better team.
"Even if it wasn't such a nice final, ending with a penalty-kick and it was only 1-0. But we were clearly the dominating team in that game.
"I think, now, the favourite is Germany. I think Germany has all the tools in the world to finish things off."