The 19-year-old attacker is considered one of the brightest prospects in world football at the moment and has been linked with a number of elite clubs this summer.
Chelsea had a ?25million bid rejected last August and it is understood that Real Madrid have agreed to trigger the ?40million release clause in his contract.
The future's bright: Neymar is tipped for great things with the Brazilians
Neymar currently plays for Pele's former club and the former World Cup winner acknowledges it will be a challenge to persuade him to stay with Santos.
'I think it is very difficult to keep him in Brazil,' Pele said. 'Santos is my team and he started there with us. I hope he stays there until more or less the 2014 World Cup but it will be a little difficult to keep him here.
'He is a good player, there's no doubt. He will be like a Kaka, a Messi - of that there is no doubt. Or a Ronaldo, a Zico, a Pele.
'He is an excellent player. I hope that he does reach his potential.'
Spot the difference: Neymar is set to follow in Pele's footsteps
Santos want Neymar to stay at least another year as 2012 marks their centenary and the player wants to be a part of the Club World Cup in Japan in December. However, he has not ruled out a January move.
Anzhi Makhachkala have Roberto Carlos on their books and hoped to use the Brazil legend to tempt Neymar to Russia.
Pele, 70, believes the teenager made the right decision to stay at Estadio Vila Belmiro last year and warned if a move eventually comes about it will take him a while to adapt to European football.
'He's a good player who could play in any team but it's hard to say if he'll come to Europe or not,' Pele added.
Legends: Pele and Eric Cantona launch the New York Cosmos Opus in London
'Last year he had the same proposals but he decided to play another year in Brazil.
'I think it was good for him because to play in England I think it would have been a little complicated for him.
'The style of Neymar, in England, Germany, Italy it's a little complicated because the marking is very tight.'
Neymar was a rare shining light in Brazil's disappointing Copa America campaign this summer, which saw their tilt at glory curtailed at the quarter-final stage after a penalty shoot-out defeat to Paraguay.
'Listen, this is football, it is a box of surprises,' Pele said. 'Everybody before two months ago said "Oh, we're going to have a very nice final - Brazil against Argentina".
VIDEO: Watch Neymar at his brilliant best
'Neymar - the great player from Brazil - against Leo Messi. This was before the Copa America. Then, unfortunately, Brazil and Argentina went out.'
Pele was talking at the launch of the New York Cosmos Opus book at The Dorchester, London, alongside director of soccer Eric Cantona and club chairman Paul Kemsley.
The re-formed Cosmos face Manchester United at Old Trafford on Friday in Paul Scholes' testimonial and hope to become a Major League Soccer franchise in 2013.
'To come back with the Cosmos is fantastic,' said Pele, who is acting as the club's honorary president.
'I spent a lot of my life promoting soccer in the United States and I'm very proud to do it.'
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Source: Daily Mail
Source: Daily Mail