The MOTD pundit believes the Liverpool right-back is attack wise but has been lacking defensively
Arnold first broke into Jurgen Klopp's side in the 2017-2018 season and he has not looked back since, helping his side win the Champions League last season and being included in the PFA Team of the Year.
The 21-year-old has also been nominated for the Ballon d'Or and has won seven England caps, but Neville, who played in the same position as Alexander-Arnold during his career at Manchester United, thinks there is still room for improvement.
Gary Neville thinks the Liverpool full-back must still get better defensively in order to be considered a world-class player in his position.
Speaking on Sky Sports following Liverpool's 2-1 win over Tottenham on Sunday, Neville said: "Liverpool's full-backs are quite simply sensational, but Andy Robertson is a better full-back than Trent Alexander-Arnold in my opinion.
"I think Alexander-Arnold is amazing. From the moment I laid eyes on him in that first game at Old Trafford two or three years ago, his temperament was incredible to be thrown in that game. He was outstanding from minute one.
"But now he's getting to a point where he is one of the best attacking full-backs I've ever seen but the three chances Tottenham had today (were on his side).
"I took the Man of the Match off him because his defensive play could have cost his team.
"Trent Alexander-Arnold is an amazing player, I love him to bits, but he just has to cut those little bits of rash defending out of his game and his positioning sometimes just needs a little bit more care."