Blaugrana have continually been linked with a move for the 21-year-old star, although the Brazilian club have denied that he is available for transfer.
Manchester City are reportedly preparing a £50m bid for Neymar, but Pele has advised against a move to the Premier League.
The 72-year-old, who spent all but two years of his career at Santos, believes that referees will protect him more in La Liga.
"The game is tougher in England, Italy and Germany because the referees usually let play go on. Barcelona would be ideal for him," The Independent quotes Pele as saying.
"Santos need him and for that reason I don't think he should leave but if he must go it should be to Barcelona."
Pele recently had words of criticism regarding Neymar's performances for Selecao.