Shearer said he actually decided to join Manchester United, even finding a home in the area.
But Newcastle manager Kevin Keegan left him a voicemail message urging the striker to give him one more chance to make a pitch.
Shearer then changed his mind, and decided the lure of his hometown club was too great.
However it was not all plain sailing.
Jack Walker was as good as his word, but Shearer said he was stunned when the Rovers chief demanded a world record £15 million.
"Manchester United and Newcastle couldn't afford that," said Shearer.
"I thought no-one would pay that. Then both clubs said they would pay £7.5million immediately and £7.5million the following year.
"Jack Walker said he would be missing out on interest in that deal and asked for an extra £600,000.
"So I was sold for £15.6m. It's not hard to see why Jack Walker made so much money."