After taking some time to adjust to the Premier League, the German has been superb for City since the turn of the year and has netted six goals in his past 11 games.
He is forming a potent wide combination with fellow youngster Raheem Sterling and was briefly part of an exciting front three with 19-year-old Gabriel Jesus before the Brazilian's injury.
And Sane's new-found confidence reminds Neville of a player he has first-hand experience of facing before he became one of the English top flight's most famous recent exports.
"Early in the season you thought 'Sane, oh he's young a little bit weak, he's not used to English football'. Gareth Bale was like that but what I'm seeing now is something similar to Gareth Bale.
"The way he has devastating pace, the way he goes past people with that power and pace. Simplicity at times, he’s not someone who’ll do two, three step-overs, it’s running behind, pace and devastating finish.
"He could be a sensational player."
Sane was on the scoresheet again on Sunday, scoring City's second goal in their 2-0 victory over Sunderland at the Stadium of Light.
Pep Guardiola's team are currently third in the Premier League and lie one point behind second-place Tottenham with a game in hand.