Blackburn Council to name road after Rovers, Newcastle United and England star
Shearer, who said he was "honoured and flattered", will open the road, near Rovers' Ewood Park stadium, next month.
Blackburn with Darwen Council said it wanted to "recognise the key role he played" in helping the club win the Premier League 20 years ago.
Shearer, who also played for Newcastle United, scored 130 goals in 171 appearances for Rovers.
"My time playing for Rovers, and also being part of the team that won the title, was an incredibly happy period of my life," he said, "and I will always look back fondly on the time and the people that made it so special."
The new stretch of road is expected to be called Alan Shearer Way.