The three time World Cup winner feels the Barcelona player has not developed as well as he expected and needs to learn to stay on his feet more
Although the 22-year-old is known as one of the brightest stars in world football at present, he has developed a reputation for diving and going to the ground under seemingly innocuous challenges.
And Pele believes that he can become one of the best to have played the game if he can pick up a World Cup winners' medal in his career and learn to stay on his feet.
"He still has to overcome some obstacles, especially win a World Cup to be the best player in the world," the three-time World Cup winner told Bild Sport.
"He needs to change though. Neymar needs to get his emotions under control and keep a cool head in duels.
"And he has to learn to play standing up. He must not go down too fast. Therefore, the transfer to Barcelona was the best thing that could happen for Brazil as teams in Europe play harder, the defenders stay tighter to the man.
"He is on a good path. But he's still far off what I expected of him."