The method was simple (and is the same one being used by mayor Hamish and his feathered forecaster) — two servings of food, each one with the flag of one of the competing teams. Whichever dish the animal oracle nibbled first carried the flag of the victorious nation.
Paul's tentacled trickery became so famous that a parakeet from Singapore called Mani, who also had an impressive track record of predicting results, was put up against him when Spain met the Netherlands in the 2010 final.
The match became more octopus versus parakeet, with Paul taking the glory by correctly picking a win for Spain.
The tournament in South Africa should also be noted for featuring New Zealand, who were the only team from the 32 competing nations to remain unbeaten.
The animal kingdom's ties to the World Cup actually go back quite a way, and perhaps originate in 1966 and England's sole triumph in the great competition.
The World Cup trophy was stolen on March 20, 1966, after being on public display before the start of the tournament in England.
Scotland Yard was baffled and it took a collie dog called Pickles to find the famous trophy, wrapped in newspaper at the bottom of a garden in suburban London.
Pickles went on to appear in films and television and was rightly named "Dog of the Year".