The Dutch coach was sacked by the Red Devils on Monday (28.10.24) following the club's poor start to the season and former United defender Neville believes he has paid the price for not being able to establish a style of play during his two-and-a-half years in charge.
The pundit told Sky Sports News: "I think the lack of identity and style is something that has been a mystery for the last two-and-a-half seasons.
"The recruitment has been awful at times but I believe there are a group of players who can play better than they are.
"Lack of style has been the biggest problem. It is a real struggle watching them play and it hasn't changed in the last 18 months. That has been as bad as the results."
Neville felt that United's 3-0 home loss to Tottenham in the Premier League last month was when the club's hierarchy decided that it was time to dismiss Ten Hag.
He said: "I suspect the Tottenham game was probably a catalyst for them to start thinking about a new manager.
"You look at who is available then you try to think of the timing. You are half hoping the manager can turn it around but, 99 times out of 100, the tide is against you and continues to do so.
"They have chosen a moment that was decided a few weeks ago. That has come.
"They would have started the process of finding Erik ten Hag's successor.
"Looking at that Tottenham game a few weeks ago I felt I had seen this before. It was a bad day for Manchester United and a bad day for Erik ten Hag.
"Overall, the challenges of the results and performances have meant that the owners have decided to sack him. I don't think anybody will be truly shocked."