Spanish journalist Guillem Balague has claimed that the Red Devils are preparing an offer for the Real Madrid star, and Neville thinks that the Portugal international could come back to the side he left for £80m in 2009.
"[The return has] been rumoured for a year or so, there was talk last year that we were going to move for either Cristiano Ronaldo or Gareth Bale," he told Sky Sports News.
"Last year [Real Madrid] won the Champions League, so has he achieved what he set out to do? That's question one. Does he love Manchester and Manchester United? Absolutely.
"You'd have to say now with the deals for (Angel) Di Maria and (Radamel) Falcao, you'd have to say it's possible. We asked a few months ago and asked if they could still attract world-class talents. They've absolutely smashed that [in the transfer window]."
United beat Queens Park Rangers 4-0 on Sunday.