Arsene Wenger has come in for criticism from a section of the Gunners' support in recent weeks, and there is a growing frustration at the north London club's failure to win any trophy since the 2005 FA Cup.
The Gunners have already fallen 12 points adrift of current league leaders Manchester United after 14 games, and defeat against Swansea at the Emirates Stadium on Saturday would see the Welsh club climb above them.
Laudrup is a big admirer of what Wenger has achieved in his time at Arsenal, but does not see them as being in the frame when it comes to the destiny of the Premier League trophy.
When asked if he thought Arsenal could win the league, the Dane replied: "No. Not because they have dropped points but because I think the title is only between the two Manchester clubs and Chelsea, and at the moment the Manchester clubs have the advantage in terms of points and momentum.
"The Manchester sides are very strong, they win tough games. Look at Manchester City at Wigan. It was a difficult game, it was 0-0 for a long time, and then they get two goals and three points and head home.
"They are very solid and win games when they are not playing well."
Laudrup believes an inability to match the investment of the top three is what is costing Arsenal in the hunt for trophies.
He said: "There are a lot of teams who want to win, there are City, United, Chelsea, Arsenal, Tottenham and Liverpool, they all want to be up there, but there are only a certain amount of top, top players.
"It's not only in England, it is the same in Europe where you have Barcelona, Real Madrid, AC Milan and Juventus.
"If we are talking about top, top players, Arsenal cannot buy the players that City, United, Chelsea, Real Madrid or Barcelona can buy.
"They have to do something else and I think Arsene Wenger has done great for many years trying to find players to make a good team.
"They have won titles but it is more difficult as the top three have more money, and when you have to buy two forward players who can make the difference, money is an issue. Money does not always win titles but it helps."
Summer signing Michu has been a key figure in Swansea's strong start to the season - the Spaniard has already scored nine goals since his £2million summer move from Rayo Vallecano.
The 26-year-old was also linked with Arsenal and Laudrup is delighted he was able to get a deal done.
"I am just happy he is here," said the Dane. "We have seen what he can do.
"He is getting goals for us and working hard as the second striker or third midfielder,
"He has a presence on the pitch, he is a big guy, so he is very important for us."