While many in the footballing community deem Spanish custodian Iker Casillas to be the top player between the posts, Schmeichel believes Neuer has overtaken Casillas and he tips the German player to hold on to the crown for many years to come.
"Neuer is simply sensational. He has replaced Casillas as the best goalkeeper in the world, He has excellent reflexes, and his anticipation skills are fantastic." the former Manchester United goalkeeper told Spox.
"I have seen a lot of situations where it seemed as if he knew exactly what the striker would do, especially in one-on-ones."
Neuer is one of several top-class German goalkeepers, and Schmeichel has expressed his admiration for the glut in talent that Germany have in the position.
"Neuer is the best in the world, and will remain the best for many more years to come. It's amazing to see how many superb goalkeepers Germany have at the moment."
Neuer will take his place in goal when Bayer Munich visit TSG Hoffenheim during their Bundesliga clash this Sunday.