Reports this week suggest Sherwood will be replaced at the end of the season, with current Netherlands manager Louis van Gaal the favourite to replace him.
And Campbell, who played with Sherwood for two-and-a-half years at White Hart Lane from 1999-2001, concedes his former team-mate won't be spared until Spurs chairman Levy has found the right formula for success at White Hart Lane.
"The hierarchy will know who they want to choose, and they're not going to be swayed by anyone else, are they?" the ex-England stopper told FourFourTwo.
"They’ve got a future for the club, and if he’s a part of that then he will stay. But if he’s not, regardless of the results, he will go.
"I think Levy just wants to get it right. He doesn’t care if it doesn’t work first time around, he’s willing to do it again and again until they get it right."
Campbell says it is not always easy to tell who will go on to be a good manager, contrary to popular belief, and believes being in the right place at the right time has helped Sherwood.
"Some people say a player will be a good manager, they become one and then they are not a good manager," admitted the 39-year-old. "Others say they never saw one coming, and they become fantastic managers.
"I think time and space changes people, the environment as well. He was in an environment, like Les [Ferdinand], and it worked perfect for them. They are there and they know the club - Les is a Spurs fan.
"That’s how most breaks start; right place, right time. I started at left-back because Justin Edinburgh was injured – you always need a break, but it’s what you do with it that matters.”
Interview: Charlie Ghagan.
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