Man United could only finish sixth in the Premier League table last season, while Man City ended the campaign in third as Chelsea were crowned champions.
Neville, however, has said that Chelsea "will dip a little bit" as they return to the Champions League, and the former England international is expecting rivals United and City to go head-to-head for the 2017-18 title.
"I said last season that the title would come to Manchester - and I was wrong - but I think this year it will," Neville told Sky Sports News. "I think Chelsea will dip a little bit. Not in a negative way, but just having the Champions League will bring different challenges.
"I think Tottenham [Hotspur] will be strong, but I feel that either United or City will win it, but I'm not sure who! I say it every year, whoever recruits best, wins the league. Chelsea getting N'Golo Kante was a masterstroke and Eden Hazard and Diego Costa came back to form.
"All the clubs are going for the same players, they're all expensive and controlled by agents. So, whoever has the best relationship, the best contacts and is willing to put the money in will probably do it."
Man United landed three trophies last term in what was Jose Mourinho's first year in charge, but the Red Devils have not lifted the Premier League title since Sir Alex Ferguson's final season at the club.