The Reds face their toughest test of the Premier League season so far at Tottenham on Saturday lunchtime, before beginning their European campaign with a glamorous home tie against French champions Paris Saint-Germain.
“The Champions League — if I was Liverpool, I would kick it into touch,” Neville told The Times.
“I know that’s very hard to do but if they could go into February, March, April without it, I think they could have a real chance if they had free weeks.
“Why? I think their method is exhausting for the front three [Mohamed Salah, Sadio Mané and Roberto Firmino].
“The drop in quality below them, if there are injuries or playing Wednesday, Saturday, I think it will take its toll.”