Following the idea of L-fuzzy neighborhood system as introduced by Fu-Gui Shi, and its generalization to (L, M)-fuzzy neighborhood system, the relationship between (L, M)-fuzzy topology and (L, M)-fuzzy neighborhood system will be further studied. As an application of the obtained results, we will describe the initial structures of (L, M)-fuzzy neighborhood subspaces and (L, M)-fuzzy topological product spaces.