Skipper Teddy will face the Great Dane for the final time when Manchester City arrive at the Lane tomorrow following the 39-year-old's decision to retire.
The pair were together at Manchester United for two seasons - the second the treble-winning campaign of 1998-99 - before Schmeichel moved onto Sporting Lisbon and eventually back into the Premiership with Aston Villa and now City.
Teddy recalled: "The biggest compliment I could pay Peter is when I went to United and things weren't going so well in my first season doing shooting practice against him to try and get my eye in and confidence back actually did me no good at all.
"On his day, when he was up for it, even in training, he was very hard to beat and didn't want to concede any goals at all.
"That made it very difficult for me to score goals and gain that confidence.
"He was always hard to play against but great to play with.
"One-on-one situations he was absolutely unbelievable. With certain goalkeepers, players get one-on-one and it's a goal - with Peter Schmeichel it was always 50-50.
"Sometimes he would get beaten if the forward was clever but he came out on top numerous times and that's invaluable.
"It saves an unbelievable number of points in a season and he contributed greatly to United's success.
"It would be very hard to choose between him and David Seaman in my time in football for who would be the best but definitely both have been the best in the world, not just England."
As for the game, Teddy warned: "We will have to be on our game because I believe this City side is capable of turning teams over four, five-nil on their day.
"It can go that way if they take a chance and go 1-0 up, suddenly there are spaces behind and with the pace they have up front and finishing ability then teams could easily become embarrassed."
Teddy Sheringham has paid tribute to goalkeeping great and former team-mate Peter Schmeichel.