Jordan, 60, spent two years with the Rossoneri up until 1983, scoring 12 goals from 52 outings.
City rivals AC and Inter are due to meet at the San Siro on Sunday evening and Jordan, who will be at the match, believes that there are few encounters that can compare to the clash between the Milan giants.
"It's one of the biggest games that I've ever played in," he said. "It's important to not get too wrapped up in it though because it is huge. Two great clubs in one city.
"All derby matches are great matches because of the people in that city. They are two powers of European football."
One of Jordan's first goals for the Red and Blacks came against Inter. Reflecting on that moment, the Scottish centre-forward conceded that it did wonders for his career in Italy.
"I scored on my debut against them," he added. "It gave me a lot of brownie points because I had a difficult start there. Like all Milan derbies the stadium was full. It was a night match and a fantastic experience."
Inter are currently third in the Serie A table, with neighbours AC in 11th.
Joe Jordan was speaking ahead of ESPN's live and exclusive coverage of AC Milan vs. Inter Milan at 7.15pm on Sunday, October 7. Visit espn.co.uk/tv for details.