The Champions League quarter-final first leg are set to begin this week as Europe’s best battle it out for a chance to book their place in the next round.
The likes of Liverpool, Real Madrid, Barcelona, Paris Saint-Germain and Atletico Madrid remain in the competition but Shearer believes that two teams stand out from the rest.
Speaking to Betfair, Shearer believes that Arsenal and Bayern Munich are head and shoulders above the competition this season and are the teams likely to go all the way.
“I think it'll be Arsenal or Bayern Munich that win the Champions League this year. I've seen every team this season. I've been to most grounds in Europe, and those two, without doubt, have been the standout.
“Bayern and Arsenal have performed consistently nearly every week, but there's a reason why Real Madrid have such a history in this competition, because they come alive now.
“I've seen them a couple of times, and I've worked in the grounds a couple of times with them. Real Madrid haven't impressed me, but obviously, you have to be impressed by how they work in this competition. And normally, come March or April, they come alive, and that's why they're the most successful team in the competition.
“Arsenal and Bayern Munich have to try and get over that, they probably are the teams to beat, Bayern Munich and Arsenal have definitely been the standouts in the competition."
However, Real Madrid live for this competition. They get judged on this competition. No other team really gets judged. That's their history, and their history tells you that.
First Bayern will have to bypass Real Madrid whilst The Gunners face Sporting Lisbon ahead of the Semi Finals where both sides will see to face each other in the final in what could be the clash of the season.