The Manchester United legend believes that Liverpool are going through a natural dip and insists they will bounce back.
Liverpool’s hopes of retaining the title is in shambles as they have won just two games in their last nine Premier League games and currently sit fourth on the league table.
The Reds were taken to the cleaners by Manchester City on Sunday, as Pep Guardiola and his charges hit four past Liverpool at Anfield.
Liverpool are the first side to lose three straight home league matches in the following campaign after winning the English top-flight since Chelsea did so almost 65 years ago, back in March 1956.
Speaking as a pundit on Sky Sports, Neville believes the Merseyside-based club are the victims of their recent success.
"Liverpool have been amazing for three years - Champions League final, Champions League win, then winning the Premier League,” he said.
“They have been at it full pelt. It is difficult to keep that momentum going for four years. It is just a natural dip. I don't think there is a need for too much panic.
“They are just going through a bad moment. It was always going to come at some point. They just look a bit tired, a bit drained. It happens."