The experienced coach believes that the Brazil international should stay at his club and that South American football deserves more respect
Brazilian legends such as Rivaldo and Ronaldo stressed earlier this month that the attacker will have to leave South America to further improve as a player and develop his game.
However, Luxemburgo feels a move to Europe is not a necessity for Neymar as Barcelona star Lionel Messi has only played on one continent as well, and is still seen as the best in the world by many.
"I think that Neymar can become the best player in the world even if he plays for Santos. There is no need for him to make the move to Europe. He can win trophies here as well, and there are great coaches here, too," Luxemburgo said at a press conference.
"Why is Messi seen as the best in the world, even if he has only played in Europe? Why do people see Messi as the best even though he has never played teams like Flamengo or Corinthians? Just because he has played versus AC Milan?
"South America deserves more respect. How many world titles have South American countries won..."
Neymar has recently been linked with clubs such as Barcelona, Real Madrid, Chelsea and Juventus, but seems intent on staying at Santos until the 2014 World Cup in Brazil.