"I am doing it because I think my performances have carried on at a level which I and the manager and chairman are content with. I think I can do that for another year," Shearer told a news conference here at St James' Park broadcast on Sky Sports. The Magpies' captain had been insistent he would not go back on his decision but manager Graeme Souness was among those urging the former England striker to change his mind and the Scot's campaign now appears to have succeeded.

Shearer, 34, has agreed to a one-year contract extension and Newcastle chairman Freddy Shepherd signalled a longer-term involvement by saying: "I think Alan's new contract will read player-coach."

Shearer, explaining why he'd changed his mind, said: "I sat down and had to analyse my performances this season. I probably haven't scored as many as last season but I feel I have contributed a lot more than I did last season or the season before.

"I had a hell of a lot of people to speak to. I spoke to managers, coaches, scouts, friends, players and players who have packed in and what came back was unanimous - they all said they felt I was playing too well to retire. I thought 'I can't retire just because I've said I would'. I was perhaps a bit hasty."

Souness said he hadn't hesitated to play on Shearer's love for Newcastle. "It's not just Alan Shearer on the pitch I want. I also want Alan around the place, he is an enormous help to me," legendary Liverpool midfielder Souness, who quit as manager of Blackburn earlier this season to join Newcastle, said.

"I tried to get into his roots, into his head, telling him 'this is your club, the club you love, and if you really love it you have got to stay here and help me for another year to be a success and help the club challenge the big boys and win things'. And he has made the right decision for all the right reasons.

Boyhood Newcastle fan Shearer, who has scored 18 goals so far this season, will now have more time to surpass Jackie Milburn's record as the club's all-time leading goalscorer.

Shearer needs only 10 goals to surpass Milburn's record of 200. And with the Magpies still in the FA Cup and UEFA Cup there is a chance of the club winning its first major trophy for 36 years this season.