He believes that Italy will face a greater challenge than the hosts as they will have to 'play against the whole stadium'.
Although Ranieri - who left Sampdoria after leading the Blucerchiati to ninth in Serie A - is hopeful that Roberto Mancini's men can do the business.
Claudio Ranieri (above) says it'll be 50-50 as to who wins the Euro 2020 final on SundayInsurance Loans Mortgage Attorney Credit Lawyer
'I'm very happy because there are some young players and, of course, some players with experience like Georgio Chiellini, Leonardo Bonucci and Jorginho. There is a very good blend,' Ranieri told BBC Sport.
'It's very important that we come back to a high level. It's important for all Italian people, not only for the fans.
'We now have the right mentality. Yes, we have the Italian soul – we stay together, we suffer, we fight – but Mancini wants to give to the Italian team the happiness to play forward, to attack in every situation.
'Our mentality has changed in two years. When it's possible, we want to dominate the opponent. When it's not possible, we try to win the match.'
England will face Italy at Wembley in the final of the European Championship on Sunday
Ranieri says Italy face a challenge as they'll have to 'play against the whole stadium'
He went on to say: 'If it's possible, we'll try to dominate the opponent. If it's not possible, they defend.
'I think it's a very, very good match. I said before the