Erling Haaland's controversial second half goal secured a 1-0 derby win at Old Trafford over the weekend to keep City level on points at the top of he rankings with defending champions Arsenal.
Four wins from four is an impressive start to life back in Manchester for Enzo Maresca, but Neville still believes Arsenal are still the team to beat, despite City's huge squad investment.
"There was a point probably two or three weeks before the end of the transfer window when City didn’t have Bouaddi, Fernandez and Ndiaye, and you thought they look well short, particularly in midfield.
"They get those three in late on, which is £250M worth of business, and it’s transformed the look of the team.
"The big thing for City is going to come down to the defence. It’s going to come down to Dias being fit. It’s going to come down to Gvardiol being fit.
"If they don’t pick up injuries, City can give Arsenal a real run. I still think Arsenal are better, but City have improved enormously with the signings they made at the end of the window."