The two German sides will meet at Wembley on May 25, with the Bavarians set to experience their third final in four years having finished as runners up in the 2009-2010 and 2011-2012 campaigns.
The current Switzerland boss believes Jupp Heynckes' men have the upper hand with such an emphatic league triumph in the bag and a DFB Pokal final to look forward to, but he warns BVB could easily scupper any treble hopes.
Hitzfeld told Bild: "This is a dream for German football that there is this final. And then, for me, also with Dortmund and Bayern being my former clubs.
"I believe that Bavaria are the slight favourites, but both meet at eye level. Dortmund have won some games against Bayern in the last three years. Form on the day will decide.
"Dortmund have nothing to lose. They have achieved more than they could have imagined this season. And people were expecting them to go out after 90 minutes against Malaga [in the quarter-finals] and they virtually pulled off a miracle.
"Dortmund reaching the final is sensational [but at Bayern] the situation is different. One team craves the Champions League and after losing two finals, one team just wants to go win the match.
"It is about time that the [Bastian] Schweinsteiger and [Philipp] Lahm generation will be rewarded with a European title. Only with an international or continental title can one write great history.
"Bayern have had an outstanding season and have broken all the records. This is unique and this success will remain. But if you do not win the Champions League, there is a disappointment. There is a sense of entitlement in Munich."
Despite Heynckes’ success this season, the current Roten boss is still set to step aside for Pep Guardiola in the summer and Hitzfeld has tipped the Spaniard to take the Bavarians on to even greater things in coming campaigns.
"He can look forward to taking over an intact, world-class team that he can continue to develop and can bring many titles," he added.
"One must not look back, but forward. Bayern can outdo Barcelona in the next few years. They have the potential to dominate the European club football in the coming years."