Liverpool suffered a blow to their Premier League title ambitions this season as they suffered a 3-0 defeat against Manchester City at the Etihad Stadium on Sunday.
Erling Braut Haaland missed an early penalty, but he made amends by heading home a delightful cross from Matheus Nunes in the 29th minute.
City doubled their lead in first-half stoppage time when Nico Gonzalez’s effort took a deflection off Virgil van Dijk to beat goalkeeper Giorgi Mamardashvili.
Jeremy Doku put the game beyond the visitors just after the hour mark, scoring with a stunning strike from outside the penalty area.
The result leaves Liverpool eight points behind Arsenal and four behind City in the Premier League table.
Football pundit Neville believes the Gunners are still the better side but insists ity and Liverpool remain serious contenders for the title.
Speaking on his Sky Sports podcast, he said: “Pep (Guardiola) has given them a bit of belief going into the international break. They’re four points off Arsenal – they’ve got experience.
“They have got players who have been around the block and know how to win titles. He will want to hang on to Mikel Arteta’s shoulder by March because he’s the one you don’t want near you.
“I thought the biggest challenger [to Arsenal] would be Liverpool, I thought Man City were too inconsistent, but it looks like I was wrong.
“They’ve still got to convince me that they’re going to win the title – Arsenal are the better team – but they’re the one team and manager you wouldn’t want on your shoulder going down the home straight.”
On being asked whether Arne Slot’s men could still be contenders after falling eight points behind Arsenal, Neville added: “I’m going to say yes.
“If it clicked, something could happen. They’ve got firecrackers and world-class players in that dressing room.”
Liverpool looked to have turned a corner when they ended their dismal run with two superb wins against Aston Villa and Real Madrid.
They were impressive in Tuesday’s 1-0 success against Madrid. The margin of victory would have been greater without some stunning saves from goalkeeper Thibaut Courtois.
However, the players flopped badly against City. They will aim to bounce back after the international break when they welcome Nottingham Forest to Anfield.
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