Madrid currently lead rivals Barca by a solitary point, but Zinedine Zidane's side have two games in hand and have lost just once in the league this term.
However, reflecting on the way Madrid chipped away at his own side's advantage at the top in the 2015-16 campaign, Neymar remains optimistic of a title challenge.
"I know it's a little hard, but nothing is impossible," he said in an interview with Red Bull. "Last year, we were 12 points ahead of second place - and we only won by one or two [points], if I'm not mistaken.
"There are still a lot of games to go, a lot of matches, anything can happen, and we are really focused. We are thirsty for the title and we're going for it."
Nevertheless, Neymar is in no doubt about the scale of the task ahead of Barca, as he acknowledges LaLiga as the strongest league in Europe.
"I think it's currently the best league, the Spanish league," he continued. "[Spanish clubs] have been winning virtually all the international titles in the last three years ... [with the Champions League] interchanging between Barcelona and [Real] Madrid.
"Also, Sevilla won the UEFA [Europa League], so I think Spain is pretty much ruling lately. There are other clubs and other players that are excellent - real stars in other leagues - but I think Spain is excelling the most."