Edwards told the Daily Star Sunday: "We negotiated terms and Shearer wanted to come and said he was coming. But at the last minute the next thing we heard was he was going to Newcastle for £15m.
"So that was a huge disappointment. I think they both missed out. When you think what Shearer won in his career, one championship medal with Blackburn and nothing at Newcastle in ten years.
"Think what he would have got with us. I think that was a wasted opportunity from a career point of view."