He said that he believes Liverpool will finish ahead of Manchester United in second place and Tottenham Hotspur will finish fourth despite a summer in which Mauricio Pochettino's team did not spend a penny in the transfer market.
That would leave Arsenal and Chelsea missing out on the top four, as they did this past season.
Shearer said regarding Tottenham: "They have not had the same finances to throw at their team as the clubs around them but they have still got themselves into a position where they are contenders."
He added that he feels Manchester City will simply be too good for their rivals, commenting: "I said at the end of last season that to go down as an all-time great team, they need to be serial winners and defend their title, and I think they will do that."
City reached a record setting 100 points last season as Pep Guardiola won his first title in English football.
This season they kick off this season with a tricky fixture against Arsenal at The Emirates, which if they can win, will lay down a marker that they mean business and could be unassailable once again.
City added to their squad with former Leicester title winner Riyad Mahrez this summer and look more fearsome than ever.