The Red Devils are currently nine points adrift of City in the Premier League table, having already suffered three defeats in the top-flight this season.
Defending champions Manchester City, meanwhile, have won nine of their first 11 games and smashed Shakhtar Donetsk 6-0 during the week.
While Neville is hoping for a Manchester United victory in the derby, he says his head is telling him City will come out on top.
Nothing would really surprise me in this game as it could swing so much either way, the former England defender told Sky Sports.
I wouldnt be surprised it City won 3-0 but it wouldnt surprise me if United won 2-1 or 3-2 either.
My heart says United will win 2-1 because theyll basically stay in the game and score two late goals after City failed to kill them off.
My head probably says City will win more than likely 2-0, 3-1, something like that.
A Manchester City win would see the Sky Blues move 12 points ahead of United in the table, but Pep Guardiola says this would still not rule Mourinhos side out of the title race.
Win or lose they are not out of the race no way. In November? Its impossible, he said.
Theyve shown it, they were in a tough moment, they recovered well.
Its a big club, big club mentality, since we arrive we try to convince [the players] that club never give up.