Three Lions boss Roy Hodgson is set to name his squad for the finals on Monday following the end to the Barclays Premier League season.
"One of the reasons I would take Rickie Lambert is for that eventuality - how important have penalties been for England at major tournaments in the last 25 years?" said Shearer.
"Lambert's record from penalties for Southampton is amazing, but I would take him to Brazil on merit for his overall contribution.
"To have him on your team, knowing that if it goes to a shoot-out he is a virtual banker, is a great feeling for a coach.
"In open play, if we are struggling to score, he is a great option to have - he came on and scored with his first touch in international football against Scotland at Wembley, and that is a decent knack to have.
"My four picks as forwards would be Rooney, Sturridge, Welbeck and Lambert.
"You don't need to play for one of the top four to get a game for England now - look at all the Southampton players who are in contention."
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball