According to 'Sky in Italy', Italian giants Juventus have offered the German international a five-year contract with the player allegedly reaching an agreement in principle to join the club when his contract expires in the summer.
Speaking after the 24-year-old put in an impressive performance in Liverpool's 4-3 win over Manchester City on Sunday, Neville insisted that the loss would be more harmful than many would think.
"The news about Can leaving, for me, I think he's a fantastic player, with personality and character. I think he brings a lot to this Liverpool team in terms of character," he explained.
"That three in midfield and the three up front were brilliant in the first half. They set the tone for how you could play against Man City if you've got that energy and ability to know how to press.
"It's a big blow for Liverpool. It won't make the headlines that [Philippe] Coutinho's sale made. Juventus are a clever club, they sign intelligent players who are shrewd and know the game."
The German has made 107 appearances for the 'Reds', scoring eight goals, since joining from Bayer Leverkusen in 2014.