The formation of neutral I2 by the photodissociation of the methyl iodide dimer, (CH3I)2, excited within the A band at 249.5 nm is evaluated using velocity map imaging. In previous work [J. Chem. Phys. 122, 204301 (2005)], we showed that the formation of I2+ from photodissociation of the methyl iodide dimer takes place via ionic channels (through the formation of (CH3I)2+). It is thus not possible to detect neutral I2 by monitoring I2+. Neutral I2 is detected in this study by monitoring I atoms arising from the photodissociation of I2. Iodine atoms from I2 photodissociation have a characteristic kinetic energy and angular anisotropy, which is registered using velocity map imaging. We use a two-color probe scheme involving the photodissociation of nascent I2 at 499 nm, which gives rise to I atoms that are ionized by (2+1) resonance enhanced multiphoton ionization at 304.67 nm. Our estimate of the yield of nascent I2 is based on the comparison with the signal from I2 at a known concentration. Using molecular beams with a small fraction of CH3I (1% in the expanded mixture) where smaller clusters should prevail, the production of I2 was found to be negligible. An upper estimate for the quantum yield of I2 from (CH3I)2 dimers was found to be less than 0.4%. Experiments with a higher fraction of CH3I (4% in the expanded mixture), which favor the formation of larger clusters, revealed an observable formation of I2, with an estimated translational temperature of about 820 K. We suggest that this observed I2 signal arises from the photodissociation of several CH3I molecules in the larger cluster by the same UV pulse, followed by recombination of two nascent iodine atoms is responsible for neutral I2 production.