Woodward has handed the Bath centre a recall having left him out of England's RBS 6 Nations victories over France and Wales.
And Woodward admits that an in-form Tindall is a huge asset to England.
"I think that when Tindall is at his best he's the best outside centre in the country," he said.
"I think he's a fabulous player and hugely under-rated. It's not a coincidence that when he plays in an England team we play well."
Woodward has no intention of underestimating the quality of the opposition particularly as Italy, under new coach John Kirwan, already have a win over Wales under their belts.
"The win against Wales will help them a lot," said Woodward. "If you look back to the last two games they have been a credit to the tournament. That is where they are now.
"Everyone is happy with the coach John Kirwan and he is doing a good job.
"I think they're playing a little differently than the Italy we knew a couple of years ago. The way they played against Wales was excellent and I think a lot of people hammered into Wales too much.
"It was a pretty good Italian performance as well. We're under no illusions. We regard them as probably the most physical team in the tournament."