City beat Everton 2-0 on Sunday to maintain their 100 percent record in the league, having scored eight goals in their opening three games and are yet to concede.
"It's ominous," Neville said in The Gary Neville Podcast for Sky Sports. "They've got strength in depth, the confidence is there, they've got power.
"They brought on Samir Nasri who scored a wonderful goal, and they've got two players in every single position.
"It's how a squad should be at this level, with the money that's spent, and it's looking good for them.
"We've seen with these City players they can be unreliable, they can go through difficult periods - particular if the likes of (Vincent) Kompany or Yaya Toure get injured for a period of time.
"They're still relying on their big players, but that's no different to most clubs.
"Keeping their players fit is critical, but they look motivated, and they look back to a level that they were when they won the league two seasons ago."