The Reds completed a stunning comeback against Barcelona to win 4-3 on aggregate to reach their second consecutive final.
Spurs must overcome a 1-0 deficit in their second leg against Ajax in Amsterdam to get to the final.
Neal, who won four European Cups with Liverpool, thinks any English team getting to the final is brilliant.
He told talkSPORT 2: “Personally, I would want Tottenham. English teams doing well in Europe, that’s what it is all about. There’s a big industry and we are talking about it now. You are living off it and so am I.
“The more teams the merrier and anything for English teams getting to a final is brilliant.”
Few gave the Reds a chance of progressing to the final after they lost 3-0 at the Nou Camp.
Divock Origi and Georginio Wijnaldum both scored twice to complete a remarkable 4-3 aggregate victory.
Neal was part of the Liverpool side who beat St Etienne in the third round of the 1977 competition where they also needed to come from behind to win.
They were 1-0 down from the first leg after being outclassed in France.
Kevin Keegan drew them level early on but a precious away goal for the visitors meant the Reds needed two goals at Anfield.
Ray Kennedy got one before supersub David Fairclough scored the winner with six minutes left.
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Neal added: “I think it overwhelms the St Etienne night that Kevin Keegan said to me ‘we grew up that night Phil’. It brings it back.
“But that overcharged that night we had with St Etienne. Well done to the boys. To beat Barcelona 4-0 is a dream come true.
“Sitting next to Ray Clemence last night, I was certainly quite tearful to hear them sing and the players to remain on the pitch was quite emotional.
“We’ve played so well in the league as well, it reminds me of our days when we were chasing doubles and trebles.”
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