The former Germany midfielder is anticipating two titanic semi-finals but is backing Jupp Heynckes and Jose Mourinho to prevail from their last four ties
Die Roten face Barcelona in the first-leg of their semi-final on Tuesday, while los Blancos take on Borussia Dortmund a day later.
And though the Germany legend and former Madrid midfielder believes the Catalans are favourites ahead of their clash with the Bundesliga champions, he expects Jupp Heynckes' side to prevail.
"I think Bayern will play Real in the final," the 58-year-old told SID.
"Bayern seem to have the most settled team. We saw this in Turin when they showed great strength.
"However, when Barcelona are in top form, you have to make them favourites.
Stielike then gave his thoughts on Madrid's clash with Dortmund and says they will need a positive result from their first leg to have any hope of defeating Jose Mourinho's side.
He stated: "Dortmund must play to their counterattacking strengths to overcome Madrid. They need a narrow win or a goalless draw on Wednesday."
The 58-year-old concluded by claiming Mesut Ozil has become a "real man" since arriving at the Santiago Bernabeu from Werder Bremen in 2010.