Shearer believes that Newcastle, who kick-off their season against Nottingham Forest on Saturday, will improve on last year’s 11th place finish.
“I’d love to say I think Newcastle will be fighting it out with Manchester United for a place in the top six, but I don’t quite see that happening yet,” he told BBC Sport.
“Eddie Howe has already done a great job to turn the club around since he was appointed as manager in November and now my hope is that they will be challenging for seventh, eighth or ninth place, which I think is realistic with the squad they’ve got at the moment.
“They finished 11th last time, and were only three points off eighth place.”
Check out the latest Premier League transfer speculation below...
5. Wolves in Batshuayi talks
Wolves are in advanced talks with Chelsea to take Michy Batshuayi on loan. (90min) | Getty Images
6. Arsenal want rid of Pepe
Arsenal manager Mikel Arteta is now ‘desperate’ to sell winger Nicolas Pepe during the final month of the transfer window, with Leeds United and Newcastle United both said to be keen. (Goal) | Arsenal FC via Getty Images
7. City join Fekir race
Manchester City are preparing to ‘join’ Newcastle United in the race to sign Real Betis star Nabil Fekir. (Fichajes) | Getty Images
8. Spurs in Udogie talks
Tottenham Hotspur are in talks with Udinese over Italian left-back Destiny Udogie. Brighton have also been linked in recent days. (The Athletic) | Getty Images