Ten Hag, 54, is expected to be sacked by the Premier League club after a hugely disappointing season.
His United side finished third last term and won the League Cup, but progress has halted throughout 2023-24, with the Red Devils just eighth in the table with three games remaining.
Manchester United will contest the FA Cup final against Manchester City after the conclusion of the Premier League but confidence is at an all-time low following Monday’s 4-0 defeat to Crystal Palace.
As Ten Hag fights for his job at Old Trafford, the club have reportedly made a shortlist of potential replacements for the Dutchman and expressed interest in England boss Southgate.
The 53-year-old will likely end his time with the Three Lions after this summer’s Euros and is said to be open to the possibility of becoming Manchester United’s next manager despite repeatedly refusing to comment on the speculation.
But Neville believes that is a move that ‘cannot happen’ and says his former club may ‘need to stick with’ Ten Hag for one more season.
‘Liverpool are not finding it easy to get a manager, other clubs are not finding it easy,’ Neville said on the Stick to Football podcast, brought to you by Sky Bet.
‘Bayern Munich are not finding it easy. Where do Manchester United go for a manager? I’ve come to the conclusion that [Gareth] Southgate can’t happen.
‘There’s no way Manchester United can wait until mid-July, when pre-season’s already started. They’d look like they don’t know what they’re doing. And, there’s no way Gareth can announce before a major tournament. He won’t do that.
‘There’s no way that in a week’s time, we’re going to see an announcement that Gareth Southgate is leaving England after the tournament to go to Manchester United.
‘That would just create absolute turbulence in the England squad for a month. He’s not going to do that to The FA or the England players, and create that huge distraction.’
Neville added: ‘I don’t see a suitable replacement for Erik ten Hag available. Bayern Munich are struggling to find a replacement, others are struggling.
‘I think we need to stick with Ten Hag and give him one more season – an injury-free season – to see if United can get back to the standards of last season where they won a trophy and finished in the top four.’
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