The European heavyweights go into the Brazil tournament as one of the most fancied teams to lift the trophy in the final on July 13.
And Lahm insists that he and the rest of the squad are more than happy to go into the global showpiece with pressure on their shoulders.
“I actually really like the fact that expectations are so high,” he told the Guardian.
“Firstly, it’s normal: we have had two third-place finishes and we have to try to improve on that in Brazil. This team has been together for a long time, we have come very far.
“Of course they want us to win the World Cup back home. Maybe it would be easier for us if there were no expectations, if we were able to play with a sense of freedom. But that’s not our reality. I’d much rather be considered one of the favourites than one of the underdogs.”
Despite a few off-field issues for Germany to contend with, he insists that the spirit within the squad is very good.
"I have found a great team spirit here from the moment I joined up with the squad," he said.
"The true test, in any case, will come later. We will have to see how people will react when they don’t play in the tournament”.