Holders Spain swept aside Norway 3-0 in Netanya while Italy needed a late goal from Liverpool striker Fabio Borini to defeat the Dutch 1-0 in Petah Tikva.
The final will be in Jerusalem on Tuesday. Italy are looking for a sixth title since the biennial competition began in 1978 while Spain go in search of a fourth crown.
"Only the best teams can overcome the difficulties such tournaments present and it was particularly tough for us today against Netherlands," Italy coach Devis Mangia told reporters.
The Spanish forced a series of saves from Norway's impressive goalkeeper Orjan Nyland Haskjold before Rodrigo poked a loose ball into the net just before half-time.
"We played a sensational first half... we had some great opportunities but their goalkeeper was excellent," said Spain coach Julem Lopetagui.
"They pressured us a lot in the second half and we were not as comfortable on the ball."
