Dyer's deal will earn him 60,000 a week, which is £20,000 more than Shearer's current salary of £40,000.
The rise will give Shearer an estimated £3 million over three years. It is believed that Shearer will take over management of the club in three years time, succeeding Bobby Robson.
Dyer's agent has said that talks are almost complete over Dyer's new deal, tying him to the club for an extra five years.