Ferguson, who revealed earlier today that he will retire after 27 years in charge at Old Trafford, tried unsuccessfully to tempt Shearer into joining the Reds Devils when it was made known that he was to leave Blackburn Rovers.
The former England captain eventually signed for his boyhood club Newcastle, but the 42-year-old has conceded that he was close to linking up with Ferguson.
"If it wasn't for my love of Newcastle then I would've had to sign for Sir Alex. I was that close I'd actually found a house in Manchester," Shearer told BBC Sport.
Shearer went on to end his career with Newcastle, scoring 206 goals in the process.