The Reds were heavily linked with a move for the 25-year-old Chile international before the forward opted to join Arsenal in a £35m deal.
And former Manchester United defender Neville believes that Sanchez, who has netted 13 goals for Arsenal so far this term, would have been the ideal replacement for Suarez after he left Merseyside to join Barca.
“[Sanchez] would have been an ideal replacement for Luis Suarez,” Neville said on Sky Sports.
“Goals, tenacity, pressing from the front, loses the ball – it goes past him he runs back.
“Everything Liverpool would have wanted to replace Suarez, obviously you could argue he wouldn’t score the goals Suarez would score, but I think he would have been the perfect replacement for Suarez.
“It’s a real shame for Liverpool they didn’t get him, but a massive plus for Arsenal.”
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