Italy are unbeaten after their opening five games while Ireland have picked up nine points from as many games.
The Irish began their group with three successive victories before suffering an unfortunate 1-0 loss to the Italians in Vicenza last October then they suffered a disappointing 3-1 loss to Lithuania in November.
“This is a big game which we are really looking forward to,” said Irish Head Coach Noel King.
“We put a good performance in against Italy in Vicenza and we know they have many players with a lot of experience of Serie A football but it’s a challenge we’re ready for. We hope the Waterford public gets behind us.”
Jack Byrne will link up with the U21 squad having trained with the senior squad in Dublin this week and King is happy that the senior management team has shown such interest in his squad.
“A pleasing feature for the U21s over the past couple of years has been the interest shown from Martin O’Neill and his staff in attending our games,” said King.
“It’s a great boost to the players to see them present and the recent invitation to Jack Byrne and Alan Browne to training with the senior squad shows that opportunity exists for everyone.”
Italy coach Luigi Di Biagio has seen Juventus defender Daniele Rugani drafted into the senior squad and has added Bari winger Kingsley Boateng to his selection.
Ireland's goalkeeper coach is Carlo Cudicini and he is looking forward to facing his compatriots.
"It is a strong Italy U21 squad and they are highly regarded at home. The number of players with Serie A experience is quite high and they naturally benefit from that," said Cudicini.
"They are the favourites in the group but the performance we put into the game in Vicenza gave us real confidence. We defended very well that day and had chances on the counter-attack but just didn't take them.
"We've two difficult games this week with Italy and then over to Slovenia, who've done good work in developing young players recently, but we feel we can get back in the group with some good results."