The Sweden international has been linked with a move away from the Magpies in recent months with Arsenal being the likely candidates to snap him up in a deal reported to be worth around £100m. However, Scholes believes the Sweden star is destined for greater things and should aim higher than the Gunners.
"Everyone loves him but I don’t see a possibility of him going to Arsenal," Scholes said on The Overlap. "He needs to go bigger and better.
"We’re talking about Real Madrid here, Liverpool need a centre forward. I think Arsenal would be an option but I think they would be down the list of options.
"I don’t mean that in a bad way but he’s at Newcastle, a really good team, a brilliant team, but they’re not going to win league titles, that’s the next stage of his career.”
Scholes then named the three clubs he thinks Isak should aim for in a move that will likely happen in the summer when the transfer window opens and a number of top teams chase down the striker who has 19 goals and 5 assists in 28 appearances.
"I think it would be a risk to go to Arsenal and do the same thing. Liverpool have got a much better chance, Man City and Real Madrid the same.
"I think his sights should be higher than Arsenal. He is a player Man United would be looking at but in the position we’re in now… it’s not going to happen.
“I agree he takes Arsenal to another level, he would be brilliant and he could possibly get you over the line.
"But I just think there’s bigger and better in him."