Howe is a leading contender along with free agent Graham Potter — while another former Chelsea boss Thomas Tuchel also wants the job.
A move for the St James’ Park chief could cost England more than they bargained in compensation after he signed a fresh Toon contract last summer.
But Shearer admits Howe would be a good fit for the role.
Speaking to Betfair, Newcastle’s record scorer said: “I would imagine the outstanding candidate would be Eddie Howe.
LOUD AND SHEAR Newcastle fire hands-off warning to England over Eddie Howe – but even Toon legend Shearer says he’s the man for the job
“I think Eddie has a big decision to make because I’m certain the FA will ask him and then whatever happens after that, we don’t know.
“I’m fairly sure that a conversation will have been had or will be ongoing now within the FA where Eddie Howe’s name will get a mention.
“Whether Eddie wants the job or not will be the key. The fact we’re talking about Eddie and England again means he’s done a really, really good job at Newcastle.
“He’s been fantastic and it’d be a big blow if he leaves because the fans love him, he’s done a remarkable job and he understands the club, but I get it and I understand it.
“Whatever he chooses, if he is tempted by the England job, which I suspect he may be, I don’t think many people could or would stand in his way – albeit Newcastle would lose a very talented manager.”
But even if England are interested and Howe fancies the switch to international management, Newcastle won’t make it easy for their gaffer to walk away.
To come so close to winning that trophy, only to be beaten in a second Euros final in a row, is a huge disappointment.
Especially when it really felt like this was our time.
It seemed that everything was coming together for us to end the long wait for a major title.
But Spain deserved it. They were the better team in the final and the best team of the tournament.
We will all — supporters, players, coaches, the FA — have to move on and go again.
Because English football is still in a good position.
Gareth Southgate has taken us to two finals, a semi-final and a quarter-final in four tournaments. We have never produced a run like that before.
The challenge now is to maintain this level of competitiveness and make England even better.
Southgate and his staff have done a fantastic job in changing the whole environment and narrative around the national team.
Now Gareth is gone, the wider culture he has put in place must be preserved.
This tournament was the biggest test of that culture the team had to go through.
They overcame the problems and went all the way, only to fall at the final hurdle.
But there is every reason to believe we can challenge at the World Cup in 2026 and beyond.
We’ve got a really good group of players, many of them young, who can go on playing and performing for England for years.
Jude Bellingham, Kobbie Mainoo, Bukayo Saka, Phil Foden and Cole Palmer — to name just five — have plenty more tournaments in them.
This tournament will also be an inspiration for the next generations of players. Unfortunately there isn’t the trophy lift to take that to a completely different level.
But England have delivered moments in Germany that will be replayed forever.
The Bellingham overhead kick and Ollie Watkins’ semi-final winner will be recreated in playgrounds and cages up and down the country.
What I would like to see now is England continuing to develop, to become a team that can consistently dominate opponents and can give a real identity to English football.
We now have players who are comfortable on the ball and technically very good.
The biggest disappointment of the tournament was that we didn’t see that as often as we would have liked. That leaves us with a ‘what if?’ feeling.
England must not lose that old-school mentality of finding a way to win even when you’re not playing well — that never-say-die spirit which got us through this Euros more than once.
But the next step is to allow other qualities to shine through, to give the players that our system is creating the platform to show everything they can do.
The job for me and for other coaches is to keep producing players that are comfortable on the ball and understand how to perform under pressure at a high level.
English football is in a good place but we need to keep going. Then we will finally get over the line.
