Our former German international midfielder watched Albania push Germany all the way on Saturday before losing to a controversial goal in the last few minutes.
Steffen, a European Championship winner back in 1996, suggested the Albania will be even tougher on home soil in Tirana.
He said: "Albania had a very good game on Saturday. I wasn’t surprised because I know that Germany always have problems with them so 2-1 was a perfect result.
"I know we didn’t play well but if you win it is quality. Albania were very strong, played a good pressing game game, worked together and it will not be easy for England.
"Having said that, after a good win against Finland, I would expect England to do well.
"Albania will have a lot of confidence for a home game. It is a very poor country and it is difficult to play there. Everything is difficult and this is why it is hard to win there. But if you look at England’s squad they should do it."
Steffen, capped 17 times by his country, said he hoped to see both England and Germany qualify for the 2002 World Cup.
He added: "England is always strong enough to go to the World Cup. If you lose at home to Germany then perhaps Germany go through first and England now go for the second place.
"But we have to wait because Germany have a tough game in Greece and England, if they beat Albania, can come closer to Germany. It is important that England and Germany fill the first two places because, for me, both teams have to go to the World Cup."
Steffen Freund has warned England not to expect an easy ride in Albania on Wednesday - but expects his Spurs team-mate Sol Campbell to arrive home with three World Cup qualifying points in the bag.