Villa and Sunderland currently occupy the bottom two spots in the Premier League, and they are in danger of becoming Championship clubs next season.
The Villains are 11 points adrift as things stand, while Sunderland sit seven points away from safety.
And Shearer said: "In the relegation battle, I think Villa are more or less down. They can’t even get the basics right. Sunderland look in trouble. Let’s not forget, Villa and Sunderland have performed miracles for years because if you don’t go and spend big and sign the right players for this league, eventually you will get in trouble.
Newcastle are in a dog fight. Steve McClaren keeps saying they are a good side but they are third bottom and they are there for a reason. They are not playing well. It looks like it could be one from six teams who will join Villa and Sunderland for the drop.
If Villa and Sunderland are to be relegated, then it looks like it will be Norwich City, Bournemouth, Swansea City or Newcastle United who join them.
The bottom of the Premier League is tightly packed, and a poor run of form could spell disaster for any of the clubs hovering above the drop zone.
At the moment it is Shearer’s old club, Newcastle, who occupy the final place in the relegation zone.
The Magpies have failed to win any of their last three matches, which has caused them to fall back into trouble.
Newcastle’s next match comes against Arsenal on Saturday at the Emirates Stadium.