United secured Champions League football with a strong finish to last season, but suffered three semi-final defeats and the club legend believes that Ole Gunnar Solskjaer's side need to put some silverware in the cabinet whilst bridging the gap to Liverpool and Manchester City.
Neville said: "A trophy and breaking that top two has to be the next step. I think this year he has to look to break that top two and that's going to be difficult."
The former United defender believes Solskjaer needs backing from the board to make sure the team are competing at the sharp end.
Neville explained: "He needs more players and support from the board to do that.
"If United don't sign any players it won't be down to the manager that they haven't broken into that top two.
"There isn't anybody in the world with that squad that would break that top two in this moment in time and maybe even struggle to compete with Chelsea with the way they've strengthened."
He also believes that Solskjaer is worthy of the board's support.
Neville said: "So this is the moment that Ole, yes he had a difficult start to last season, but I think with what he's done he deserves that backing that the other managers in the last ten years have been afforded."