A laundry dryer is provided with a modular air recirculation subassembly fitted beneath a rotatable drum of the dryer. The subassembly has an air recirculation passage provided between an air supply passage and an air exhaust passage of the dryer. The air recirculation subassembly further has a flow directing flap at the juncture of the air inlet passage and the air recirculation passage to direct the recirculation air flow toward a heater and away from an inlet end of the air supply passage. The air recirculation subassembly may include a filter positioned across the air recirculation passage upstream of the heater, which filter is removable through the air exhaust passage. The subassembly may further include a heat exchanger to transfer heat from the warmer air exiting the exhaust passage to the cooler air entering the air supply passage, and a recirculation air flow regulating flap.