The Argentine has nothing but praise for the attacker and feels it would be quite an achievement for the Blancos if they were to sign him
The Brazil international appeared to be destined to join Barcelona this summer, only for his club to turn down a second formal offer from the Catalans earlier this week talks continue.
Madrid are believed to be closely monitoring the 21-year-old's situation and Valdano would love to see Neymar make the move to the Bernabeu.
"It would be a huge coup if Real Madrid manage to sign Neymar," Valdano was quoted as saying by Marca. "Not just because he's a great player, but also because they'd then take him right from under Barcelona's nose."
He added, "I like Neymar a lot. Many of his individual actions result in a goal and often it's a move that only seems to be happening with him on the pitch."
Neymar has a contract with Santos until after the 2014 World Cup.