Shearer stays as player-coach

Newcastle, who are in the semi-finals of the FA Cup and the quarter-finals of the UEFA Cup, are well placed to end a 50-year drought without a major trophy and Shearer said: "The last two or three months have been great and I hope we can go on to bigger and better things.

"The spirit in the camp is fantastic and I want to be part of something which is happening here and I believe that will happen.

"It was a tough decision for me but I believe it's the right one for everyone concerned and more importantly the football club.

"I think I made the decision to retire too quickly. I would love to stay on in football and I have started taking coaching badges and will continue that for the next season.

"I am continuing playing because I think my performances have carried on at a level which I and the manager and chairman are content with. I think I can do that for another year."

Shearer has scored 18 goals in all competitions this season and needs only 10 more goals to surpass Jackie Milburn's 200-goal all-time club leading goalscorer record.

The former Blackburn star, who was signed by Kevin Keegan for a then world record £15million in 1996, is confident that he can maintain his own form for another season.

A delighted Shepherd said: "It's the news every fan wanted to hear and certainly the news Graeme and the board wanted to hear. I think Alan's new contract will read player-coach."

Former England captain Shearer stressed that despite his change of heart at club level, he has no plans to make himself available again for his country.

"No, that was the right decision many years ago and I think it proved to be the right one," he added.

Shearer, explaining the thinking behind his decision, said: "I had a hell of a lot of people to speak to. I spoke to managers, coaches, scouts, friends, players and ex-players who have packed in and what came back was unanimous - they all said they felt I was playing too well to retire. I thought 'I can't retire just because I've said I would'. I was, perhaps, too hasty."

He insisted Milburn's record was not a major factor in his decision. "I have to say it didn't. I realise what a great man Jackie Milburn was to this football club and the area but I stayed on because I think the club is moving in the right direction, not because I want to break the record. I might do that but it is not the reason I stayed on.

"I stayed on because I believe we can win things. I've seen enough in the last few months to suggest I can do that."

Shearer will be in the Newcastle side to face Aston Villa tomorrow as they look to move themselves closer to the race for European qualification by extending their unbeaten run to 13 games.

Souness's side have not been beaten since Arsenal's Dennis Bergkamp clinched a 1-0 victory for his side at Highbury on 23 January.