Neville coached Cancelo during his short spell in charge of Valencia.
“I absolutely love him to bits. To be fair, when I was at Valencia I wanted United to sign him, at the time they could have got him for £25m and he went to Inter Milan," he told Sky Bet's Big Premier League Debate.
“Cancelo is perfect for City. He's a winger, a goalscorer, assist maker, he's a right-back! You're going to lose a bit defensively in terms of a back four because he'll never be there, I promise you that.
“The coach before and after played him at right winger. I always played Cancelo, I absolutely loved him - his professionalism, his enthusiasm for the game, he's really intense, trains like you wouldn't believe.
“He's a brilliant signing for City. He probably wouldn't do as well at other clubs with more of a rigid back four but for City he will be phenomenal."