Bruce Friedrich, PETA spokesperson said that they were urging people to sign an online petition demanding Paul's release.
"No animal deserves to be confined to a tiny tank and we're hoping that Paul's popularity, or in Germany notoriety, will cause people to think a little bit more about the inner lives of octopuses."
The move comes after death threats from German fans, who had said that they want Paul fried or turned into a paella for betraying the country by correctly guessing Spain's victory over Germany in the 2010 FIFA world cup semi final.
Paul, from Aquarium Sea Life Centre in Oberhausen, Germany, had predicted the outcome of all six of Germany's matches by choosing to eat food from boxes adorned with the flags of Germany and its rivals.
Meanwhile, the eight-legged oracle has predicted that Spain will win the World Cup final, and Germany will emerge victorious in the battle for third place over Uruguay.