The Reds are currently in fourth place and two points clear of nearest rivals Everton ahead of their clash against league leaders Arsenal at Anfield on Saturday.
The big battles for all teams are still to come and it could be any of those four, but I think it will be between United and Liverpool
Defending champions United are seven points adrift of Brendan Rodgers’ men, who have a vastly superior goals record, following a shock 2-1 loss at Stoke City last weekend.
And former Red Devils defender Neville feels Liverpool are in the strongest position to finally seal a return to the Champions League, despite refusing to rule out his old club out of the top-four race.
“There’s little fights going on everywhere,” Neville told Sky Sports.
“The relegation is incredible and we’ve never seen anything like it before, the top of the league is obviously tight and the Champions League spaces with Everton, Tottenham, United and Liverpool is fascinating as well.
“I have to say that at the moment Liverpool are in pole position and look the strongest.
“Liverpool were top of the league on Boxing Day and I think that there has been progression there this season, mainly through Luis Suarez’s form who has been incredible but he is supported and aided by the rest of his team mates.
“I would have said a few weeks ago that United would have got fourth place, I’m not going to change it just yet, but there has to be big improvements.
“Everton had a good response to that demoralising derby defeat and Tottenham we’re not quite sure about are we? The big battles for all teams are still to come and it could be any of those four, but I think it will be between United and Liverpool.”
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news