He correctly predicted Germany's defeat in the World Cup semi-final against Holland, making him right on every game in the World Cup so far.
He has become the strangest celebrity of this year's World Cup.
From his home in a zoo in Oberhausen, Germany he makes his predictions before every game.
His keepers offer him tasty mussels from two containers, each adorned with the flag of the teams that are playing.
In every single case he has picked the winner.
His choice of Spain before the World Cup semi-final stunned Germans who were sure the octopus oracle would plump for the home side.
His amazing talents first became known during the European Cup two years ago,
Back then he picked every winner -- except in the final when he picked Germany to beat Spain but Spain won.
His keeper, Oliver Walenciak, said before the latest match:
"We know that all octopus have nine brains so we know he has exceptional powers.
"In the European Cup he got one game wrong..."
"It was the final between Germany and Spain and he picked Germany which was wrong and this time he has picked Spain so we are thinking he must be wrong again."
But Spain won after a Carlos Puyol header put them in the final.
Paul's fearless forecasts has made him some enemies, including some Argentina fans, who blamed him for their side's loss against Germany and threatened to eat him.
Walenciak said: "There are always people who want to eat our octopus but he is not shy and we are here to protect him as well. He will survive."