The world number 13 will join French Open champion Alexander Zverev, seven-times Grand Slam champion Carlos Alcaraz, Italy's Flavio Cobolli, rising Czech Jakub Mensik and Spain's Rafael Jodar for the September 25th-27th event.
Ruud will be making his sixth successive appearance in the team tournament.
"Casper is exactly the type of player you want on your team," Team Europe captain Yannick Noah said.
"He's a fantastic competitor, a great teammate and someone who really embraces what the Laver Cup is all about.
"We were disappointed not to win last year, but that's given us more motivation."
The Laver Cup was last held in London in 2022 when Swiss great Roger Federer played the last competitive match of his career alongside Rafa Nadal in the doubles.
Team World will be captained by Andre Agassi and include Australia's Alex de Minaur, Americans Ben Shelton, Taylor Fritz, Learner Tien and Tommy Paul as well as Kazakhstan's Alexander Bublik.