Former star Pele on Monday criticised the Brazilian Olympics squad saying he felt they "are not ready" for the event on the evidence of a 2-0 weekend loss to Mexico and also lambasted starlet Neymar for overly hugging the left wing.

"I think it's good this (defeat) happened as it does away with the feeling that this is a marvellous team, that it's doing fine," opined Pele of the loss to the Mexicans in Texas which came on the heels of a much more impressive 4-1 win over the United States.

Coach Mano Menezes hopes to lead the Brazilians to their first Olympic title in London in August but Pele says they have some way to go yet.

"It is a good team, with good players but not yet ready to overcome difficulties" when they arise," said Pele, who indicated he felt Neymar "has difficulty playing against a European or Latin American" defender - more so than against Brazilian league rivals.

"He stays stuck out there on the left but that doesn't just happen in the national side but also with Santos," Pele charged, urging Neymar to move inside and become more involved in dictating the play.

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