Former Newcastle defender John Beresford believes the club must follow the example of Aston Villa and invest in young British talent if they are to achieve long-term success.
Beresford, who twice helped the Magpies to second place in the Premier League, has also followed former team-mate Rob Lee in backing Alan Shearer to be given the manager's job on a permanent basis.
Shearer came in for the final eight games of the season but was unable to prevent the club from slipping into the Championship.
And Beresford believes a combination of Shearer and a radical overhaul of their recruitment policy could finally bring success to Tyneside.
"I would love to see Newcastle go down the route with the younger element, but British players. If I was to give a blueprint I would say Martin O'Neill at Aston Villa," Beresford said.
"There are some fantastic players in the youth teams at Manchester United, Arsenal, Manchester City and Chelsea who won't get into the first team.
"Someone like Jack Wilshere at Arsenal, I would be asking if we could have him on loan and with Alan Shearer in charge you have got the pull.
"That's what I want to see, I don't want to see someone sign foreigners, you are gambling again, get the kids in and allow them to develop.
"And Alan is the only person who will be given the time to do that. Even if they suffer a few defeats he will be given time, but if they bring in another manager he is going to be under massive pressure."
Sheffield United fan Beresford has seen enough of the Blades in the Championship to know Newcastle will not find it easy next season.
"I fear for Newcastle if Alan Shearer is not at the helm," said Beresford, who is in Hong Kong to play in the IP Global Soccer Sevens tournament this weekend.
"I don't know who could come in at this time and give the place a lift. I don't know what Alan is asking for in terms of what he needs to spend, but if Mike Ashley wants the club to succeed you need him to be manager.
"The fans will give him time. For Newcastle to be back in the Premier League and competing it is going to take three or four years.
"This year to build up, hopefully you bounce back then look at mid-table, then in the third year you look at six or seventh spot.
"But for now, it is getting Alan to sign and getting those players to understand how to win."