Vardy has earned numerous plaudits this season for his goalscoring ability, which has seen him score in 10 consecutive Premier League matches.
However, Neville feels that just labeling Vardy as a finisher is misleading, as the 28-year-old also has very good close control.
"Sometimes players like Jamie Vardy can become a little bit exposed because you always think of them running in behind but he's got a good touch, a much better touch than people give him credit for,” Neville said.
"I think he can play in tight areas but I think in the next few weeks against the top defences is where we'll really see whether he can adapt and adjust when other teams will give him a lot more respect than other teams are at the moment."
Vardy is currently the Premier League’s top scorer, having racked up 13 goals for the campaign already.
His rise to the top has been remarkable, and he is rapidly turning into a key player for both club and country.
Vardy will hope that he can continue to hit the back of the net, as Leicester aim to keep their magnificent form up.
The Foxes are currently at the top of the Premier League standings, and if they are to hold on to this positon they will need Vardy to continue to fire on all cylinders.