Arsenal absorbed the relentless pressure from Tottenham at their home ground, the Tottenham Hotspur Stadium, before securing a crucial victory with Gabriel's header just past the hour mark.
The Gunners came into the game with captain Martin Odegaard injured and key midfielder Declan Rice suspended but increased their phenomenal away defensive record ahead of a big game at defending champions City, live on next Sunday at 4.30pm.
"They had no Martin Odegaard and Declan Rice - two of their very, very best players - but what they did have going into that game was a very good back four and a very defensive shape and unit. Tottenham never broke that," Neville said.
"That was a team and performance of know-how. Wily, not naive, not immature - it was the opposite of that. It was experienced, mature and it was what a team who has won multiple titles would play like. Mikel Arteta hasn't won a title yet at Arsenal but it was a really good performance.
Trending"We have been so critical of Arsenal over the last 10 to 12 years when they've been loose and naive and giving goals away. This is the opposite we're watching now: they're a very, very good team we're watching. A team that everybody can watch and take a lot away from it.
"Last year, at Man City away when they drew 0-0, they had everything in terms of defensive compactness - apart from the counter-attacking goal.
"And a few of us were, not critical, but observed that when you go and win a title, you win that game. This game was very good preparation game for next Sunday, they have to do the same again."
Neville continued to praise Arsenal's defensive structure at Spurs, adding they showed a mixture of George Graham and Arsene Wenger's Gunners teams.
After Sunday's victory, Arteta became the first Arsenal manager to win three straight league games at Tottenham since Graham - a feat legendary manager Wenger never managed to achieve.
"They're not like Pep Guardiola's [Man City] side where they always seem to have the ball," he added. "They can sit deep in 4-4-2. The two front players are doing a great job in that unit. I love 4-4-2, it's how we used to defend, it's how Arsenal historically would have defended.
"I referred to Steve Bould and Tony Adams and that famous Arsenal back five. This Arsenal back five aren't at that level yet because they haven't won a league, but they're starting to show signs of a cross between George Graham's team and Arsene Wenger's team. A mix of both.
"I like this Arsenal team, really good team, really good performance levels. I have nothing negative to say about them at all today.
"I'm not going to go in hard on Tottenham because I genuinely think it was hard work for them to break down that Arsenal team today. Even when you get a cross in, you have two giants in William Saliba and Gabriel who are fighting and harassing and tight. There are no free headers in their box.
"It was a really good day: focus, concentration, discipline, everybody doing their jobs."
Neville believes it is too early in the season for Man City's game with Arsenal to be deemed a "title decider" - but says Guardiola's City have a genuine contender for the Premier League title in Arteta's side.
The pundit compared the situation to Jurgen Klopp's Liverpool - who finished as runners-up in 2018 and 2019 before winning the title in 2020 in a case of 'third time lucky'.
"I'm excited about the game," said Neville. "It's a little bit like when Jurgen Klopp was chasing Pep Guardiola for a number of years and they eventually got there. It feels like that, with Arsenal on the shoulder of Man City.
"That's that development in that mindset. Sometimes it's a real step-by-step journey to get to where you want to be, and it's a feeling I have with Arsenal. Next Sunday is another measure of where they are in the journey to win a Premier League title.
"Arteta has signed a new three-year deal with one clear target - to win a Premier League title. That's not the expectation of not just him, but of the players, the fans and also in the boardroom.
"This has to result in something. This progression they're on has to end with a league medal around their necks and next Sunday is another time for us to look at Arsenal and assess where they're at.
"What Guardiola and Man City have achieved over the last few years is incredible, but they know they've got a serious contender."
Watch Arsenal's Premier League game away to Manchester City live on Premier League next Sunday; kick-off 4.30pm. Stream this game and more with NOW.