Solskjaer is expected to make wholesale changes when Watford visit in the FA Cup this weekend. United have progressed from 33 of their last 35 third-round ties, while the Hornets have lost their last nine away games at Old Trafford.
The trip to Turf Moor to face Burnley then takes place next Tuesday meaning United can arrive at Anfield on January 17 top of the Premier League to take on the champions, live on Sky Sports.
"It's a time for Man Utd to knuckle down," Neville continued. "Not be too hard on themselves because I think they've played against a brilliant team.
"City turned up again. Ole will have been hoping Sunday was a one-off, it wasn't. They were at it again. He'll know how good a team City are.
"I don't think he'll be too resigned to that, he'll be massively disappointed, he'll have wanted to take them that extra step, but I didn't think Man United played badly. I thought they belonged in the game.
"And it could have gone the other way; Anthony Martial at the back post with the header, Harry Maguire with the header, little bits of luck that just go one way or the other. Ruben Dias clears a couple that maybe at the other end didn't get cleared - Aaron Wan-Bissaka's header to Fernandinho that ends up in the back of the net.
"They're just details that decide games and the details went Man City's way. You can't argue with that because of the way they played.
"Solskjaer will I'm sure look at this game and think of it being not terminal in any way shape or form. It will be a massive disappointment, but he'll want quick recovery: FA Cup, Burnley, Anfield. He'll want big performances in the next couple of weeks."
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