Geordie legend questions timing of striker sale
Carroll moved to Liverpool on transfer deadline day in January for £35 million but Keegan admitted any plans Pardew had on reinvesting the money on the squad could be short lived.
"I saw an interview with Alan Pardew where he said he hoped to get some of the £35 million and I thought 'Alan, you ain't going to get any of that'," he told BBC Radio Five Live.
Keegan’s second spell in charge of the magpies ended in 2008 when he fell out with owner Mike Ashley after disagreements about transfer targets and the funds available to purchase those players.
And while the former England manager acknowledged selling Carroll was the right move for the club he questioned the timing of it, and believes the situation that Pardew finds himself in has similarities to when he sold James Milner to Aston Villa in 2008.
"I think £35 million for Andy Carroll, if I'd been manager, I'd have taken it," he continued.
"But how can you spend it on the last day of the transfer window?
"My big argument was that we were selling James Milner for a lot of money - probably above the value we put on him - and I said, 'Please don't sell him before we get someone in'.
"The reason I didn't want them to put that out and to hold on a little longer was so I could get a good value signing. It's business - it's a sensible way to do to do it."
"If you sell Milner for £11 million then they say, 'If he's worth £11 million, our guy must be worth £9million."