Manchester United’s two biggest rivals are currently separated by four points at the top of the table, with Jurgen Klopp's side leading the way after 23 rounds of action.
Neville, who won eight league crowns with the Red Devils during his playing days, was asked to nail his colours to the mast with his preference for who comes out on top in May.
He said to Virgin Radio’s Chris Evans Breakfast Show: “I said a few years ago when they were both going for the title that it's like having a choice of two blokes you want to nick your wife. It’s not changed, it’s getting worse!
“Do you know something? I've heard for the first time in a few weeks that some United fans want Liverpool to win the title because they don’t want to see City win back-to-back titles and start a period of domination.
“I can’t bring myself to say Liverpool, I just can’t. It’s going to have to be City.”
Neville also praised Manchester United's turnaround under his old club-mate Ole Gunnar Solskjaer, but says their alarming form under Jose Mourinho means he won't be backing them for another title of their own any time soon.
"I think when he came in, the club couldn’t have been any lower in terms of expectation; there was a bad feeling around the club," he said.
"He’s put himself in the frame and he keeps on winning. I think it’s the best start for any Manchester United manager in the history of the club. It’s unbelievable really.
"The players at the end were obviously not trying for Mourinho as they just switched the tap on and off. It doesn’t fill me with confidence that they can take Manchester United back to the title.
"The difference is incredible but I must admit I have my doubts about this group of players."
