Neves made a shock move to Wolves, who have been heavily influenced by Jorge Mendes, from Porto - the club with whom Deco won the Champions League in 2004.
Neves broke several records in his time in Portugal, including becoming the Champions League's youngest ever captain at age 19. This season he was key to Wolves' promotion push.
"I need to confess that when Porto sold him to Wolves I didn't understand because he was young, he could be one of the best players in Porto - but this is business for the club," Deco said to 'Sky Sports News'.
"At that time I didn't understand why they sold him, but for him it was good because he's won the Championship, now he will be in the Premier League.
"He's young and has a good future. I'm happy for him."