The arrival of Chris Sutton for the 1994–95 season established a strong attacking partnership at Blackburn. Shearer's 34 goals, coupled with Sutton's 15, helped the Lancashire club take the Premier League title from archrivals Manchester United on the final day of the season, and the duo gained the nickname "the SAS" (Shearer And Sutton). After being asked by the press how he planned to celebrate winning the title, Shearer replied with "creosoting the fence". Shearer also had his first taste of European football in the UEFA Cup that season, and scored in the second leg as Blackburn went out in the first round, losing to Trelleborgs FF of Sweden. His efforts for the club led to Shearer being awarded the PFA Players' Player of the Year for 1995.

Although the club could not retain the title the following year, Shearer again ended the (now 38-game) season as Premier League top scorer, with 31 goals in 35 games, as Blackburn finished seventh in the league. The previous season's first-place finish also saw the club enter the Champions League. Shearer's only goal in six full Champions League games was a penalty in a 4–1 victory against Rosenborg BK in the final fixture

He passed the 100-goal milestone for Blackburn in all competitions on 23 September 1995, scoring a hat-trick in their 5–1 home win over Coventry City in the Premier League. On 30 December, he scored his 100th Premier League goal, making him the first player to hit the landmark, in a 2–1 home win over Tottenham Hotspur. His final tally for the club was 112 goals in the Premier League and 130 in all competitions. His final goals for the club came on 17 April 1996, when he scored twice in a 3–2 home league win over Wimbledon.

Shearer's international strike rate had also dried up, with no goals in the twelve matches leading up to Euro 96.

1996–2006: Newcastle United

After Euro 96, Manchester United and Real Madrid again sought to sign Shearer, and attempted to enter the battle for his signature. Manchester United chairman Martin Edwards and Real Madrid president Lorenzo Sanz stated that Blackburn Rovers refused to let Shearer go to Old Trafford or Estadio Santiago Bernabéu. Ultimately Shearer joined his boyhood club: Newcastle United, Manchester United's title rivals.

On 30 July 1996, for a world transfer record-breaking £15 million (equivalent to £ million today),