The Fifa president has backed Barcelona's latest recruit to "flourish" in the tournament, which begins on June 15
The 21-year-old has been the subject of much scrutiny after completing his long-awaited move to Barcelona last week.
And with the former Santos forward set to star in the dress rehearsal for World Cup 2014 this summer, Blatter believes the competition will serve as the perfect platform for the striker to showcase his talent.
"Neymar is an exceptional player. The Confederations Cup is the ideal stage for him to flourish," the Fifa president said to O Estado de Sao Paulo.
"He has everything in his own hands and now he just needs to show the world what he's capable of."
Neymar played the full 90 minutes of Brazil's 2-2 draw with England on Sunday evening and showed glimpses of his ability in a bright opening 45 minutes before fading after the break.
Selecao will kick off their Confederations Cup campaign on June 15 by hosting Japan at the Estadio Nacional in Brasilia.