Liverpool currently sit top of the Premier League having won all five of their games so far.
Chelsea, meanwhile, sealed a 5-2 win over Wolves last Saturday but were beaten by Valencia in their Champions League group stage opener on Tuesday evening.
And Neville believes Frank Lampard will suffer a second successive defeat as Chelsea boss on Sunday.
I mentioned the Champions League with Liverpool last season and got it wrong in the sense that I didnt think Liverpool could compete in two competitions right to the very end and got it horribly wrong, Neville told Sky Sports.
I still think Liverpool need to win a Premier League title, its absolutely essential that they do that.
Particularly with this team that theyve got now.