"I will just have to wait and see what the scan says. It does not look good. They think there might be a tear in the medial ligament and if that is the case then that will be it for me I am afraid," the 35-year-old was quoted as saying by BBC Sport on Tuesday.
Shearer, who was due to retire after three more games, limped off the pitch in the 71st minute of Newcastle’s 4-1 win over Sunderland on Monday.
The former Englan captain, whose final match was scheduled to be against Chelsea on May seventh at home, said that he didn’t want to end his career earlier than planned.
"I will be bitterly disappointed if it is the end because there are three huge games left for us," he added. We are sitting in seventh place now, which might get us into Europe and after what has been a tough season that would be a great achievement for everyone.
"I wanted to go the full distance, yes, but if I have to finish, then it's not a bad way to finish, coming to your local enemies and scoring a goal that has helped us get a 4-1 win," Shearer said.
On the other hand, Magpies boss Glenn Roeder insisted that he has not yet given up hope that his veteran player will play again, but said that it was decided it wouldn’t be bad if he would hang his boots after their victory over Sunderland.
"We are not at that stage yet, you can talk about that maybe in a week's time or four or five days' time if it turns out that is the case. But I will remain positive there is a chance we will still get him back on the pitch, maybe in the very last game of the season.
"If we don't, I suppose his memory of scoring then what would be his last goal would be a very, very happy one for different reasons," said Roeder.
Newcastle hold seventh place in the Premiership standings with a tally of 51 points, 37 points behind leaders Chelsea.