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Placing full tool specifications directly in the prompt incurs a cost that scales linearly with the size of the tool registry, rapidly consuming the context budget. As the registry grows, this leads to higher latency and degrades selection accuracy, particularly due to interference from irrelevant tools. We overcome these limitations by introducing NTILC, a neural tool selection and invocation framework that replaces in-context registry look-up with learned latent retrieval. NTILC maps both user intent and tool specifications into a shared embedding space, enabling tool selection via external retrieval rather than in-context lookup. The language model is conditioned only on the selected tool schema, allowing for precise, constrained argument generation. 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