The Magpies have already revealed their interest in bringing Owen to Tyneside however Shearer expects that there will be several offers made for the England international from other top English clubs.
Shearer said: "Michael Owen would be an improvement to any club in this league, and that includes Newcastle. I would enjoy playing alongside him again.
"I have made no secret of the fact that I think he is a top player and his record suggests that.
"Anyone who wants to score goals should look no further than Michael Owen. Our manager would love him and he would be a great asset but I feel Michael will have a few options.
"I had great times with him for England and he can score goals in any league in the world. He has done it in the Premier League and La Liga, but there will be a few after his signature despite one or two denials."
Shearer admits that the denial of interest from some clubs, including Arsenal, Liverpool and Chelsea is simply a decoy as the clubs wait for an initial bid to be made before making their own move.
Shearer continued: "Everyone knows what football is like. People are not prepared to say they are after him. He says he's talked to three or four clubs and they could be the three or four who can win the title, who knows?"
Shearer also revealed his club's targets for the forthcoming season: "We have got to get into the top six. There's no European football, which is disappointing, but if we are honest that could work in our favour. Last season we did not have the squad to play so many games and get through them.
"Playing Thursday, Sunday, Thursday, Sunday was tough. We have to finish higher than we did because last season wasn't good enough for a club of this size.
"Everyone knows we will need more additions, six or so went out in the summer and we have only had three arrive which doesn't add up."
Newcastle are currently short of attacking options following the sale of Craig Bellamy to Premiership rivals Blackburn Rovers and Patrick Kluivert returning to Spain following a disappointing season at St James' Park, and are keen to add to their attack before Sunday's season opener against Arsenal.