The Blaugrana have won the Spanish top flight four times in the last five seasons but currently sit four points behind their fierce rivals with ten games to go, including this Sunday’s Clasico.
And Valdano says Madrid are the favourites for the weekend's clash as Barca are currently on a downward slope but the current league leaders are moving forward under Carlo Ancelotti.
“This game puts Madrid as the favourite for the first time in a long time,” the 58-year-old said.
“Madrid is rising and it feels as if Barcelona is coming to the end of this cycle.”
The ex-Real forward admitted the current crop of players at Gerardo Martino’s disposal is an exceptional group. However, he feels the Catalan giants will not see such an incredible team of talents again, pointing to the 2010 Ballon d’Or in which Lionel Messi, Xavi and Andres Iniesta made up the top three.
“The club has undergone a generational miracle but it is not repeatable. We have never seen a school take a Golden Ball, as well as Silver and Bronze before and we will not see it again.”
Valdano then turned his attention to Barca star Neymar, insisting the young Brazilian doesn’t have it easy at the moment.
“He's young and he is surrounded by the extra-sporting controversy involving his family.
“It does not seem comfortable. In addition, there is a sort of complex playing alongside Messi.”