Neville Neville, 63, from Bury near Manchester in northern England, is accused over an alleged incident in March.
"I have reviewed all the evidence that they have gathered and have authorised the police to charge him with one count of sexual assault by penetration against a 46-year-old woman," said Nazir Afzal, the chief prosecutor for the Crown Prosecution Service in northwest England.
"I have concluded that there is sufficient evidence for a realistic prospect of conviction and that it is in the public interest to prosecute this case."
Neville is due to appear in court on June 12.
Gary Neville now works as a coach for the English national side, while Phil Neville, who played for Everton for the last eight years, announced he would retire as a player at the end of the domestic season which concluded on Sunday.