Brazil are the defending champions of the Copa America, having won in Venezuela in 2007.
The Selecao qualified for the quarter finals in unconvincing fashion, having been held to draws against the Guarani and Venezuela, before coming out on top in a thrilling 4-2 win against Ecuador.
Neymar and Pato both chipped in with a brace of goals as Brazil qualified as Group B winners.
The winner of this tie faces a semi-final showdown against Chile or Venezuela in Mendoza on July 20.
Mano Menezes' men are unbeaten in six games, since a 1-0 reverse to France in Paris in February.
Paraguay qualified by virtue of being one of two best third-placed sides.
The Guarani are yet to taste victory in the 2011 Copa America, having been held to a draw in all three of their group games.
However, Gerardo Martino's men - who came close to defeating Brazil in this year's tournament before being pegged back by a 90th-minute equaliser, have history in winning against the Selecao in the Copa, doing so en route to topping their group in 2004.
Roque Santa Cruz has become the joint all-time leading scorer of his nation, having grabbed a record-equalling 25th strike against Brazil in the 2-2 draw earlier in the group stages. The record, taken from Jose Cardozo, had stood for six years.
PROBABLE LINE-UPS
Brazil:
Julio Cesar; Maicon, Lucio, David Luiz, Andre Santos; Lucas Leiva, Ramires; Robinho, Ganso, Neymar; Alexandre Pato
Mano Menezes looks set to to be without Thiago Silva for the clash against Paraguay. The AC Milan defender is struggling with a right thigh muscle injury and missed out on Friday training with the team, instead going through a session with the physio. David Luiz is expected to replace Thiago Silva in the heart of a somewhat leaky defence, whilst Mano also has the luxury of Luisao - a member of the past two Copa America-winning sides - in the squad to partner Lucio. Maicon, who caught the eye with an assured performance in the 4-2 win over Ecuador, will also be likely to be given the nod ahead of the unimpressive Daniel Alves as the Selecao look to seal a semi-final spot.
Paraguay:
Villar; Piris, Da Silva, Veron, Torres; Barreto, Ortigoza, Riveros, Estigarribia; Santa Cruz, Barrios
Paraguay coach Gerardo Martino is sweating on the fitness of key striker Roque Santa Cruz. The Blackburn forward was forced off during the thrilling 3-3 draw with Venezuela and was replaced by Nelson Haedo Valdez. The tactician, who is due to leave his post following the Copa America, added: "We will give it another day and wait on the results of tests."
Prediction
Despite a rather indifferent start to the tournament, the Selecao have sprung into life with an assured display against Ecuador. Neymar and Pato finally look to have found the goals having struck four between them. A slender win for Mano's men looks to be the most likely outcome, with Paraguay looking set to be without Roque Santa Cruz to trouble a dodgy Brazilian backline.
Brazil 2-1 Paraguay 
