After sacking Liam Rosenior last week, Chelsea have installed Calum McFarlane as caretaker manager for the rest of the season.
Advertisement
Advertisement
Howe, meanwhile, could be leaving Newcastle this summer after a difficult season.
Merson told Sky Sports: "I'm a big fan of Eddie Howe and if he leaves, they will be queuing up around the corner. Be careful Newcastle.
"Chelsea would take him all day long. We were talking about him being the next England manager. Everyone will be queuing up to take him.
"It should be his decision if he wants to leave. He won a trophy for the club for the first time in 70 years."