Fabio Capello's side were humiliated by Germany, losing 4-1 in the second round in South Africa, with Neville claiming the squad lacked quality.
The former Manchester United star, however, feels old boss Ferguson would have struggled to push England any further.
Speaking to BBC Radio 5 Live, Neville said: "Ferguson may have got more out of the squad.
"But the reality is, would we have beaten Spain in the last World Cup? No, because they were better than England."
With 85 appearances to his name, Neville is England's most-capped right-back, but has described his time playing for his country as "a wasted opportunity".
Only once during his career did England progress beyond the last eight - the Euro '96 semi-final when they again lost to Germany - and then Neville was not involved in that game.
"I loved playing for England, but we've fallen short and I've contributed to that over the last 10 years as much as anyone," he said.
"The analogy I use is, if a man takes a woman out 85 times and then she's not your girlfriend at the end of it, you've wasted a lot of time. You measure success by achieving things.
"We got to the quarter-finals, but that's falling short because we were not getting to European Championship and World Cup finals.
"Over the last 10 or 15 years, Spain, France, Italy, Portugal and Brazil have all been better than England.
"We need more players of higher quality who can keep the ball."
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The berties may not like him. But what he says is true.
Fergie might not of won England the World cup but he would of got them to the finals.
There is a reason England tried to get Fergie as their manager on several occassions only for him to ignore the interest, Fergie might of won the World Cup or Euro with England in the 1990's but that was a better side, however Cleverley will bring to the side the creativity and skill that the national team has lacked since Scholes retired and is england gives him the starting place he deserves on a regular bases than they might have a real shot this time at the Euro 2012 competition instead of always bigging the coutnry up and watching as they fail. Sir Alex would lead this England squad to victory because Rooney, Young, Cleverley, Smalling, Jones, Welbeck would be involed and together they would bring what England has been missing for a while now, a never say die attitude, true desire for victory, actual leadership and team spirit.
CANT SHUT THIS GUY UP....OH GOD
CANT SHUT THIS GUY UP....OH GOD
CANT SHUT THIS GUY UP....OH GOD
no i dont aggree with you gary if alex was the manager years ago i think england would have a european title and a world title under there belts
If a man takes a woman out 85 times! You have to laugh. I like gary's straight talking style but thats awful nonsense. Think he'll make a decent pundit in time though. Most of them start out shakey.
FATPADDYBOY - how are those typing lessons coming along for ya?
First of all, Fergie would have given the FA a real good chewing. Then he would have put the fear of God into the players who were not performing. Then he would have built a side from youth players over a period of say six years. After all this preparation, he would have won two European Championships, two world cups and 12 titles among other minor trophies etc etc.
But thank the Lord he came to United!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Hmm......especially since the nineties there has been a so called golden generation of footballers who have flopped time and time again . Yet these players simply walk back into the first team after injury and seemingly have never really had to compete for their place . How else do you explain the lack of real meaningful opportunities for young players in previous years . Call me cynical , but it seems blindingly obvious that player power has run this squad for a long time now ,each campaign we have seen the same faces return with the same end result . After the last debacle all the players over twenty seven should have been dropped and a new young squad brought in in an attempt to build a team for the next world cup . The old guard have had their chances well and truly , so why not try with our young players , The European competition would act as a valuable proving ground for them , the real prize is the world cup and if they don't do so well.... so what....it will probably be more exciting than the dross we've been served up for years now . Remember the phrase " Ask not what your country can do for you , but what you can do for your country "...well some of our players have this phrase in reverse . There is no doubt in my mind that a culture of self serving , egotistical selfishness in the pursuit of England caps and the overall enhancement of players personal glory ...ie ..Englands hall of fame which is the driving force behind this ... David Beckham is just one prime example of this , he effectively retired from international football when he decided to play football in america . But to keep his global football image as long as possible he refuses to step down . Tell me that that John terry hasn't been to slow to play at international level for a few seasons now . Even in the prem he gets left for dead by a pacey player , never mind a lethal striker .These are a couple of examples , it seems that there are some players who are untouchable , bigger than England itself it seems...and until that problem is dealt with , it is detrimental to English football and its future progress . At the end the day , what exactly have so many of the same faces actually achieved on the international stage that merits their continuous first team placements over others?......
I totally agree with Gary n think England can do much better if they tone down on their expectation of the team n realise other countries are just better but England are not far off.
Hoddle, Ericsson, Capello ! Not really in SAF league. We might not have had many world class players but I think SAF would have got England to the semis or Final of a major tournament- and I'm as Blue as they come !!!!