The world No. 13 has played four singles matches at the tournament, winning three, and two doubles matches, victorious in one.
This year's edition will be held at the Chase Center in San Francisco, from 19-21 September.
"The Laver Cup is incredible, bringing together Europe, with its rich tennis history, to take on the rest of the world," said Ruud.
"I love representing Europe, and doing my best for the whole continent, not just my country.
"The team aspect is unique - getting to play alongside guys who are usually my rivals and to support each other is something we don't experience often.
"I'm also really looking forward to playing in front of Yannick and Tim for the first time - they are a dynamic duo and it's going to be really cool.
"And, I'm excited to visit San Francisco for the first time. I'm a big Golden State Warriors fan, so playing in Chase Center will be something special."
Ruud has had a mixed season, losing in the second round of both the Australian Open and the French Open, before withdrawing from Wimbledon due to a lingering knee issue.
His 2025 highlight is a maiden Masters 1000 tournament in Madrid, defeating Jack Draper in the showpiece match.
The Norwegian joins Carlos Alcaraz, Alexander Zverev, and Holger Rune on Team Europe.
Taylor Fritz, Tommy Paul, Ben Shelton, and, most recently, Joao Fonseca have previously been announced for the Team World line-up.
The remaining spots in both teams will be announced over the next few weeks.
Jannik Noah will replace Bjorn Borg as the captain of Team Europe, whilst Andre Agassi will fill the same role within Team World by taking over from John McEnroe.
"Casper is a great competitor who brings experience, passion and composure to the team environment," commented Noah.
"He understands the spirit of the Laver Cup and is exactly the kind of player you want by your side. I'm delighted he's back."
At last year's edition, Team Europe prevailed over Team Europe in Berlin 13-11 by virtue of Carlos Alcaraz defeating Taylor Fritz 6-2, 7-5 in a tournament-deciding singles match.
Roger Federer, who helped create the Laver Cup, says he is 'excited' to bring the exhibition back to the United States.
"For the Laver Cup to come back to America is always great," said the Swiss.
"We were in Chicago and Boston, two very successful Laver Cups, and now we're going to San Francisco. It's an amazing stadium, where the Golden State Warriors play.
"I've been there, and I thought it was incredible. I wish I could play this year, but those days are over. I really enjoyed it as a fan. From what I'm hearing, ticket sales are going really well, and I think the Bay Area will embrace tennis.
"They don't see much tennis overall, and some of the greatest players on the planet are coming. It's really exciting. Berlin was a huge success in Germany. I was there last year and had the best time. I'm sure San Francisco will be equally successful."