Sunday's showdown will be the first time the two south Wales clubs have played each other in a top-flight fixture.
The sense of anticipation among the two sets of fans has been growing since the dates for the two games were announced in June and will reach fever pitch during the week ahead.
Laudrup played in more than a few high-profile derby encounters during his glittering playing career, and understands just how unique an occasion Sunday will be.
"They are special games whether it's Real Madrid v Barcelona, Lazio v Roma, FC Copenhagen v Brondby or Juventus v Torino, it is always something special," he said.
"You just know how much it means to the people, especially the fans. They want to win all games but there are some games that are so special to them.
"I watched a bit of Sunderland v Newcastle before our game and you can hear and see what it means.
"A lot of people will talk about this game - everyone who walks down the street will be talking about it.
"They will be saying how much they want to win on Sunday. But that's okay because the players will then know how important it is to the fans.
"But not just Sunday's game, but the game we play here against them in March too."
Watch Cardiff City v Swansea City on Sky Sports 1 on Sunday from 3.30pm