The Denmark international has been in impressive form in the Premier League this season as Claudio Ranieri's side have become unlikely title contenders, Schmeichel keeping 12 clean sheets in 31 matches.
Only Joe Hart has more than the 29-year-old, who has revealed he has tried to adapt his style to match Neuer's 'sweeper-keeper' performances, in which the German is seen functioning as an outfield player.
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"Neuer's so proactive it's incredible," Schmeichel told the Times. "Neuer's changing the way of goalkeeping. "The bravery in making those types of decisions is what sets him apart from anybody else in the world.
"Neuer has taken it to a level where he'll chest the ball and keep the play going. The centre backs know he's so far forward that if anything goes over their heads he'll be there.
"I try to do that - quick off the line."
Schmeichel is expected to once again be guarding the Premier League leaders' goal when they entertain Southampton on Sunday at King Power Stadium.