Democracy campaigner Liu Xiaobo is serving an 11-year jail sentence for helping to write a document calling for freedom of speech and assembly.
His wife has reportedly been placed under house arrest after visiting her husband over the weekend to tell him of his award.
China has reacted furiously to the Nobel Committee's decision, and says Mr Liu is a criminal.
Mr Rudd says he will raise the case directly when he next speaks with his Chinese counterpart.
"We have made representations in relation to Liu Xiaobo in the past, we will continue to make those representations on behalf of him and any freedom... unnecessary restrictions of freedom of movement in relation to his wife as well," he said.
"When the next opportunity arises, when I'm in contact with our friends from China, of course this would form a normal part of our discussion of points of difference.
"You see, in our relationship with China - it is a strong relationship, it is a good relationship, it covers many spheres - but it is also a relationship which is able to cope with difference and disagreement."
The Chinese Government is expected to comment publicly on the award on Tuesday.
Meanwhile, an Australian MP says he will introduce a private members motion calling for China to free the political dissident.
The Member for Melbourne Ports, Michael Danby, says the activist has done nothing wrong, and MPs on both sides of politics will support his motion.
"I've got people who have said they'll be happy to speak on it and I anticipate we'll also be doing something of a petition," he said.
"We owe this to the Chinese people, to support people who are genuine, peaceful, constitutional and just want a civic society like Australia."
Mr Danby says Mr Liu is only calling for fundamental human rights.
"I think many parliamentarians will want the opportunity to call on Chinese authorities to release the Nobel Prize winner from China in order to receive his award in Norway," he said.
"Liu Xiaobo is one of the most peaceful academic leaders. In another country he'd be venerated."