Spain suffered a remarkable 5-1 defeat at the hands of the Netherlands in Salvador on Friday, leaving their title defence delicately poised, while Chile overcame Australia 3-1.
If Spain lose to Chile in Rio de Janeiro on Wednesday and the Netherlands claim at least a point against Australia, Vicente del Bosque's men will be out of contention to qualify for the round of 16.
And Chile forward Paredes has kicked off the mind games ahead of Wednesday's clash at the Maracana, heaping pressure on the world champions.
"We have played several matches with Spain. It will be life or death for them and a final for us," said Paredes.
"We saw only part of the Spain game, the speed was crucial and we have fastest men in attack. Whoever plays is obliged to do it the best way.
"Each one must work for that goal to the fullest. No team press as we do and against Spain it will be no exception.
"There is no thought of going out looking for a draw. We go out with a winning mentality. We do not listen to what people say about us.
"Our concern is to work, not make mistakes and try to beat Spain."
Chile can take a huge step towards the knockout round if they beat Spain, though Felipe Gutierrez - a second-half substitute in the victory over Australia - insisted it is business as usual.
"Collectively we are well, it was very important win," the 23-year-old said. "It leaves you with a pleasant feeling after the first match.
"We all have the will to win and we know this is a final. Spain has very influential players. We will continue with business as usual, and pressure them to have the ball. Chile is not based on statistics.
"We focus on our game and go out and do things right."
