The former Manchester United defender is one of Sky Sports' top pundits as well as a coach within Roy Hodgson's national set-up, but the Argentine feels Neville should be more committed to the latter role.
And Tevez believes his former Old Trafford team-mate must make up his mind one way or the other before England can go on to compete for top honours, as "there is too much of a conflict of interest to do both."
"Maybe England have to look at the structure of its coaching staff, which brings me to Gary Neville. I can't believe that any of the top countries would employ a television pundit as a part-time coach," Tevez told The Sun.
"[Neville is] happy to make jokes about players, referring them to a PlayStation game, but I'm not sure many World Cups have been won on PlayStation - so I think Gary needs to stop playing games and concentrate on his coaching."
Tevez feels that while Neville's punditry career is obviously a benefit to the former England international, he must be ready to dedicate himself fully to the England coaching role in order to truly help Hodgson.
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"He should be out there watching games in the Premier League or the Championship, reporting back on current players and those who might play a part in the World Cup and beyond.
"He should also be turning up at clubs, watching their sessions, seeing how top-class coaches work and how England players respond to them."
And the Argentine compared the situation to other top international sides, suggesting it would be unthinkable for one of the world's best sides to have a television pundit as a manager's assistant.
He continued: "Can you imagine Spain, Italy, Germany, Holland, Brazil or Argentina employing a manager's right-hand man whose day job is [as] a television pundit? I can't ever see it happening.
"I've worked under great managers, probably some of the best in the world and I don't think any of them would consider having an assistant whose main focus was not 100 per cent on the job.
"Spain have been the most successful side in the world for the past few years. Is their assistant manager a TV pundit?
The short answer is no.
"Gary has to decide whether England is his absolute focus or does he want to make a name for himself on Sky.
Because, in my opinion, there is too much of a conflict of interest to do both."