European football's governing body announced on Friday that City has been banned from continental competition for two seasons for what UEFA said were "serious" financial fair-play breaches between 2012 and 2016.
English Premier League champions City, who were also fined 30 million, responded quickly to say they would appeal to the Court of Arbitration for Sport (CAS).
And former Manchester United defender Neville believes City's legal challenge will prove successful.
"I think City will beat UEFA. UEFA, I have no faith in them whatsoever," Sky Sports pundit Neville told the broadcaster on Monday.
"I think essentially they are a hopeless organisation who will just apply what would be erratic disciplinary sanctions for different things and I think City will beat them in the courts."