The Blaugrana hammered the Santiago Bernabeu side in November 2010, and Menotti feels that Madrid have never really recovered since that heavy loss at Camp Nou, despite having met several more times after that game.
"I would be hard pressed to come up with an important game similar to the one between Barcelona and Real Madrid that ended in 5-0," Menotti said in an interview to Canal+.
"Obviously a result like that can happen, but it really was a huge blow to Madrid. I get the feeling that they have been afraid of Barca ever since that loss.
"Madrid have shown fear and gave Barcelona way too much respect. They've had very few ideas of their own in order to really compete with Barca since that defeat."
Despite Menotti's assessment, Madrid will head into December 10's Clasico at the Santiago Bernabeu three points clear of Barcelona with a game in hand.
Starting last month and continuing every Friday through to January, Goal.com will publish extracts from Graham Hunter's highly-anticipated book, Barca: The Making of the Greatest Team in the World. Check out this week's enthralling extract on how Barcelona's path to greatness all started with Spain's triumph at Euro 2008. Don't miss it!