Manchester City lifted a record-breaking fourth consecutive English league title last season but one of the pundits believes they will come up short.
Yet for Neville, City will be playing second fiddle to Arsenal, whose year-on-year progress he cannot ignore.
'I went with Arsenal to win the Premier League last year and I'm sticking with them this season,' he told Sky News.
Arsenal missed out on the Premier League title on the final day last season, accruing 89 points
'Obviously, they are up against of the great sides this league has ever produced in Manchester City under Pep Guardiola so it is always going to be tough.
'However, I feel like Arsenal have stability with the manager Mikel Arteta and they have stability in a team that is still improving.
'You cannot write off Manchester City, but I am going for Arsenal again. They were so close last year and I think they will be able to make that extra step this time.'
Despite Neville's protestations, his microphone sidekick Carragher could look no further than Pep Guardiola's side for the title.
Asked if he believes their dominance will continue, he said: 'Unfortunately, yes.
'Arsenal will be the closest challengers but Pep Guardiola, it doesn't matter what league he is in, more often than not he wins the league title.
'The only people that have managed to stop him are Jose Mourinho at Real Madrid one season and Jurgen Klopp with Liverpool a few seasons ago in the Premier League.
'That shows how tough it is and it has been tough on Arsenal with how close they have come in the last two season, but I know with Liverpool, Manchester City are a very difficult nut to crack.
'I think most neutrals will hope there's a different winner this time around and I think I'd say the same because you don't want the same team winning year after year, but you do have to take your hat off to City and Guardiola.
'With the job he has done and the team they have built, they are an extremely difficult team to beat.'