The Magpies suffered a 3-1 home defeat to Bournemouth yesterday which left them in 19th place in the Premier League table.
It was a fifth defeat in six Premier League matches for McClaren's side and they are now only above Aston Villa in the table.
And Hall, who sold the club to Mike Ashley in 2007, believes it is time for a change of management.
"You need change," he told the BBC. "Steve is not getting them to play and it's probably time he goes. You've got to find someone to harness the team."
McClaren was appointed as John Carver's successor last June, but he has presided over just six league victories this season.
And the Northern Echo claim the 54-year-old's future will be decided today.
The report claims Ashley will discuss McClaren's future with managing director Lee Charnley, with the duo desperate to keep the club in the Premier League.