Both teams are known as the blues, France – Les Bleus and Italy – the Azzuri, who will face off for the World Cup title in Berlin on Monday morning AEST.
Portugal and Germany will play for third on Sunday after French veteran Zinedine Zidane, gave France a 1-0 win through a penalty.
Eight years ago Zidane inspired Les Bleus to win the title match of the showcase tournament and he is hoping to do again when France meet the Italians.
The 34-year-old Zidane will retire after the finals and will play the last game of his glittering career at Berlin’s Olympic stadium.
ZZ got the winner after 33 minutes by converting a penalty after Thierry Henry's ankle was caught by Ricardo Carvalho.
Portugal, playing its second semi-final after reaching the last four in 1966 with Eusebio in its ranks, has to be content with challenging host Germany for third place on Sunday morning (AEST) in Stuttgart.
Portugal has a reputation for losing tough physical battles against the French whom it has not beaten since 1975.
Stacked with veteran players that it lured out of retirement, France started the tournament in sluggish fashion before rediscovering its winning ways against World Cup title holders Brazil.
Portugal had an opportunity to go one goal ahead after nine minutes with Maniche firing just over the bar from the edge of the box after a clever back-heeled Cristiano Ronaldo pass.
Ronaldo, booed by large sections of the crowd every time he touched the ball, was a permanent danger and came close to scoring after a fine move punctuated by a deflected shot shortly before the break.
However France settled and looked in control for much of the match, nearly doubling its lead early in the second half with attempts by Henry and Ribery.
Portugal was repeatedly denied a point by a watertight French defence.
France survived a scare in a tamer second half after 78 minutes when a Luis Figo header flew over the bar after Fabien Barthez scooped a Ronaldo free kick into the air.
But it will be the blues, France and Italy, who take to the field on Monday morning for the chance to lift the game’s most coveted gold trophy, the World Cup.