After the 5-1 demolition at the hands of Netherlands, the former Real Madrid star feels La Roja must aim to reverse their poor goal difference against the South Americans.
The 2010 World Cup winner was humiliated in its first game of the tournament, surrendering a lead to lose 5-1 to Louis van Gaal's Netherlands.
That result, combined with Chile's win over Australia on the same day, means losing to the South Americans on Wednesady would likely see Spain eliminated at the group stage.
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Raul feels that the team has to recover from last Friday's trouncing by picking up a big win but maintains it won't be easy against Jorge Sampaoli's spirited outfit.
"Nothing less than three points against Chile at the Maracana can restore the dented respect for the world champions," the former Real Madrid striker wrote in a column in Times of India. "The defeat against Netherlands has put the defending champions in a fix. They have to win by a big margin now.
"Of late, teams have, found out a way to play against them - keeping the defense tight and counterattacking with great speed. Among the Spanish defenders, only Jordi Alba has enough speed to tackle counterattacks. But because he spends so much time upfront, it is tough for him to track back quickly. Arjen Robben proved how costly that could be."
The former Spain striker also believes Iker Casillas should be dropped for his performance in the opening game, but admits that is unlikely with back-up goalkeeper David de Gea out injured.
"Spain have problems aplenty. Casillas had a terrible day against the Dutch. Vicente del Bosque has no choice but to play him again as second goalkeeper David de Gea has injured himself in training and will be out for at least a week.
"That leaves Del Bosque with a choice between Pepe Reina and his captain. I think Casillas will be preferred again."