A morale-damaging loss to city rivals Manchester City on Monday saw United lose hold of the summit for the first time in nearly two months. With just two games remaining, it could be nigh impossible for the Red Devils to reclaim the position and Roberto Mancini's side could go on to win their first league title since 1968.
The men in red fought hard throughout the match and were only undone by a brilliant header off a corner-kick by City captain Vincent Kompany. They were often pegged back in their own half at the Etihad Stadium but they defended deep and made a number of crunching tackles and the heat of the occasion even spilled over the sidelines as the two managers carried out a shouting match of their own.
City lead the table on just goal difference, however, and any slip-up could be exploited by Neville's former side and he predicts that United will not give up hopes of winning their 20th league title. City play Newcastle and Queens Park Rangers while United are up against Swansea and Sunderland in their final two games..
"Sir Alex Ferguson has rightly said that the title has slipped away," Neville said on Sky Sports.
"But you can only keep going. That's all you can do in football."
"All the pressure's now on City," he insisted.
"They play first up at Newcastle so United will know exactly what they need to do [by the time they kick off against Swansea at Old Trafford], or even if they've got a chance."
City overwhelmed United with their numbers and they even had star players on the bench that were unutilised in the game. Controversial striker Mario Balotelli did not even get to return from suspension and play a part in the derby.
Neville believes that it's imperative for Ferguson to invest in the summer and bring in new players to match City's squad strength.
"I'm sure he'll improve his squad. I think he has to," he said.
"He's an honest person and he'll recognise there are areas of the squad he needs to strengthen."