New England manager Roy Hodgson brought Gary Neville on board ahead of this summer's European Championships.
The former Manchester United defender, who retired earlier this season, will juggle the England job with his role as analyst on Sky Sports.
Phil Neville does not believe there will be a clash of interests because he rates honesty as his brother's best quality.
"I know what Gary will do for the squad," Neville told Sportsweek on BBC Radio Five Live.
"It came as a bolt out of the blue. He has had such a successful time with Sky and I think he was looking to put his feet up this summer.
"The first thing I thought was 'what a clever move by Roy Hodgson'. From a PR exercise, he has not gone for a yes man, he has gone for someone who will challenge him and the team.
"I think it was a masterstroke. There is a new era coming in now. I am really positive and quite excited.
"I think the appointment of Roy Hodgson was a clever one and the appointment of my brother as his number two excited me even more.
"He (Gary) is someone who has played in five major tournaments, played nearly 90 times for England and someone who has played with nearly all the players - but he has had a year away from them, which gives that distance.
"He is well respected and the year he has had on the telly has won a lot of people over.
"He has had success in the Premiership, he has won titles and the Champions League.
"His biggest strength will be his honesty. People will say 'you can't go on telly one week and be a coach the next'.
"Let me tell you one thing about Gary, whatever he says on TV he would be prepared to say to a players' face in the changing room.
"Gary will be honest. He has so much enthusiasm for wanting England to do better."
Phil Neville understands why Hodgson decided to take John Terry and not Rio Ferdinand.
"It was probably one of the biggest decisions Roy had to make," Neville said.
"We are in a state of transition at the moment. We are all hoping we can improve this England team and get better results.
"To do that you have to start blooding the young players.
"To take both of them (Ferdinand and Terry) probably would have been the wrong decision looking forward to the next major championships.
"I can't choose between John Terry and Rio Ferdinand. They are the best two centre backs in the country, they have great experience and they are great leaders.
"What probably went in John Terry's favour was that he has been a regular for England in the last year."
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