Pele: Germany are Brazil's biggest World Cup threat
Record five-time champions Brazil, whose last success was in 2002, enter the tournament in June and July as favourites.
Pele, who represented Brazil 92 times for 77 goals and is a three-time World Cup winner, listed several teams who could challenge for the title.
But it is Joachim Low's Germany – third at the past two editions – who worry him the most.
"In my opinion, Germany – now they are the one very good team," Pele said, speaking at the launch event for a youth competition in Egypt.
"Spain is also a very good team, they play well. Argentina, we have to respect Argentina, no doubt.
"Italy, those teams no doubt we will have to respect at the World Cup.
"We then have other teams that people don't say (much about) but Chile, this year Chile is a very good team.
"And Holland I think is playing very well. I think those four or five teams will be in the final."
Pele expects no surprises at the 2014 World Cup, which begins with Brazil hosting Croatia in Sao Paulo on June 12.
The 73-year-old also believes European leagues are slightly ahead of the rest of the world.
"The differences normally with the leagues in Europe are different from South America. I think the stronger leagues are in Europe no doubt – Italy, England, Germany," Pele said.
"The Spanish of course have the best team today, which is no doubt Barcelona. The league as well is very strong.
"In Brazil we have a good league too. It's different but all the leagues today are at the same level.
"It's not easy to play against Germany, it's not easy to play against Italy, or Argentina or Uruguay. I think today it's very even."