Manchester United became the sole leaders of the chasing pack following a 1-0 victory over Burnley at Turf Moor on Tuesday night.
It is the first time they have done so at this stage of the season since 2012/13 – their last title-winning campaign under Sir Alex Ferguson.
The Red Devils could go six points clear ahead of reigning champions Liverpool when both teams lock horns at Anfield on Sunday.
Neville has warned against getting carried away but insists Manchester United can start dreaming.
“I don’t think anyone is saying Manchester United will win the league, but the fact that they are in a title fight…wow. I never would have imagined it,” the former full-back, who won the Premier League eight times at Old Trafford, told Sky Sports.
“It’s a strange season. Why shouldn’t Manchester United fans believe? Why shouldn’t this side believe? Look at the front three, look at that midfield four, look at Bruno Fernandes – they have some fantastic players.
“The other teams aren’t in great form. Man City are sitting there cool and calm, nobody is really talking about them, but they are hitting very good form and that is a real danger.
“But in the next few days it is time to have a little bit of fun. It won’t be a comfortable few days for Liverpool.
“l believe these players feel they can have a really special season. It’s odd, it’s changing every single week, you don’t know what is going to happen and there’s an element of unpredictability and Manchester United could exploit that.”
