The Nottingham Forest boss will be appointed the new Newcastle manager this week, according to BBC Sport.
The Englishman is out of managerial work at the moment, having been sacked as the Derby County head coach last month.
McClaren has worked at a number of clubs, including Manchester United, Middlesbrough and FC Twente, and is a well-respected figure in the footballing community.
Former Tottenham Hotspur star Gascoigne believes that the Englishman would be a good managerial appointment for Newcastle and seems to be in awe of him.
“When Sven (Goran Eriksson) was manager of England I was invited to the training ground and Steve McClaren used to take training and it was class,” The Chronicle quotes the 54-year-old as saying.
“I did not realise how good he was until I was there to see it. I don’t think he’s had a fair crack at any of his past jobs. He talks so much sense when you talk to him about football.”
Back in April, former Newcastle striker Michael Owen made similar remarks about McClaren’s coaching abilities (click here to read more).
“He is an exceptional coach,” the former Liverpool and Manchester United striker told BT Sport at the time. “I have worked with a lot of good coaches in my time, and he is right up there.”
McClaren did a good job at Derby in his two years at the iPro Stadium, taking the Rams to the Championship playoff final in 2013-14 and narrowly missing out on a top-six finish in 2014-15.
The former Wolfsburg's boss's task at Newcastle will be to make the team competitive and avoid the situation the club faced in the recently concluded 2014-15 campaign.
The Magpies were in danger of getting relegated to the Championship until the final day of the season.
McClaren is a brilliant coach and will command respect from the Newcastle players. The fans should look forward to next season with optimism.