Sky Sports News reported on Friday night that sources close to Shearer have said the legendary former Magpies number nine would be keen to succeed sacked manager Sam Allardyce - despite having originally distanced himself from the vacancy.
Nevertheless, Portsmouth manager Harry Redknapp remains the favourite to take over at St James' Park.
Redknapp cancelled his Friday lunchtime press conference at Portsmouth ahead of Pompey's Premier League meeting with Sunderland on Saturday.
And Sky Sports say they understand that Portsmouth and Newcastle are "in discussions regarding a compensation package" if Redknapp decides to acept the job on Tyneside.
Meanwhile, Milan Mandaric has described Redknapp as 'magic' - and expects him to become the next Newcastle boss.
Mandaric, who worked with Redknapp at Portsmouth during his time as chairman of Pompey between 1998 and 2006, feels his former employee would be a success with the Magpies.
Now Leicester chairman, Mandaric admits he would be 'devastated' to see Redknapp leave Fratton Park but would understand it.
"It would break my heart to see Portsmouth without Harry because he was made for Portsmouth," Mandaric told Sky Sports News.
"They have done a tremendous job there, but I understand Harry and that he thinks he has done what needs to be done there and it is time to move.
"I hope that is not the case. I don't want him to leave Portsmouth, but there is a certain indication that he will go to Newcastle.
"Maybe I am prejudiced, but as far as I'm concerned he is a magic guy as far as how to select the players and how to get the best out of them.
"I don't think anyone is better than Harry and if he goes there. I think he will do a better job than a lot of people.
"No disrespect to previous managers, they are all good people, but Harry is magic as far as that goes."
Nevertheless, Portsmouth manager Harry Redknapp remains the favourite to take over at St James' Park.
Redknapp cancelled his Friday lunchtime press conference at Portsmouth ahead of Pompey's Premier League meeting with Sunderland on Saturday.
And Sky Sports say they understand that Portsmouth and Newcastle are "in discussions regarding a compensation package" if Redknapp decides to acept the job on Tyneside.
Meanwhile, Milan Mandaric has described Redknapp as 'magic' - and expects him to become the next Newcastle boss.
Mandaric, who worked with Redknapp at Portsmouth during his time as chairman of Pompey between 1998 and 2006, feels his former employee would be a success with the Magpies.
Now Leicester chairman, Mandaric admits he would be 'devastated' to see Redknapp leave Fratton Park but would understand it.
"It would break my heart to see Portsmouth without Harry because he was made for Portsmouth," Mandaric told Sky Sports News.
"They have done a tremendous job there, but I understand Harry and that he thinks he has done what needs to be done there and it is time to move.
"I hope that is not the case. I don't want him to leave Portsmouth, but there is a certain indication that he will go to Newcastle.
"Maybe I am prejudiced, but as far as I'm concerned he is a magic guy as far as how to select the players and how to get the best out of them.
"I don't think anyone is better than Harry and if he goes there. I think he will do a better job than a lot of people.
"No disrespect to previous managers, they are all good people, but Harry is magic as far as that goes."
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