City lock horns with Premier League leaders Arsenal at the Etihad Stadium on Sunday in what is the biggest game of the season so far.
If Pep Guardiola’s are able to beat Arsenal, they will have the chance to go top of the table for the first time in months when they head to Burnley on Wednesday.
The clash is crucial for the title race and after Arsenal dropped points to Bournemouth last week, they have City breathing down their necks as they aim to collect a vital three points away from home.
Speaking to Betfair, Shearer admitted that whoever is victorious is likely to go all the way and win the title with momentum on their side.
“Sunday’s game is unbelievably big. I mean, City have pegged them back. They're the team with the momentum, they're the team with form, and Arsenal are not.
“I think if City win it, then I think their momentum will carry them through. If Arsenal win it, then the gap would be too big. A draw for Arsenal would be a good result, because they've got the better goal difference as well. I think whoever wins Sunday wins the league.
“It's given City a chance (Arsenal’s loss to Bournemouth), which Arsenal didn't want, but they've both got the chance to go and do it on Sunday. You always get the right to reply as a player, and Arsenal have got to reply now, but City are the inform team, and they've got the momentum.
“It's an unbelievably big game on Sunday and for the first time last weekend, there was a doubt in my mind about Arsenal.”
Arsenal’s nine-point advantage was trimmed to six last weekend and could be cut down to three on Sunday afternoon before City clash against Burnley in their game in hand.
City have failed to win any of their last five head-to-heads in the Premier League but must find 3 points this weekend if they want to stay in the title fight.