The Hoops travel to Kilmarnock on Saturday trailing rivals Rangers by 10 points and sitting third in the SPL table behind Motherwell.
But Killie boss Shiels believes Lennon has already proved himself a more than competent manager and, regardless of what happens in the clash between the two clubs, says the title race is far from over.
He said: "I feel that he has proved he is the right man for the job.
"They have a game in hand and, if they win that, they are seven points behind and the next thing they are back in the race. If they beat Rangers, it's four.
"There is no way that they're out of it. I'm sure it will ebb and flow between now and the end of the season.
"I think Neil has all the credentials to finish the job and I don't see any way that he should be under pressure at all."
Shiels is well aware that Celtic will see the clash with Kilmarnock as a must-win match and admits the timing of the fixture is not ideal for his side.
He added: "It's not a great time to play them.
"There never is a good time to play the Old Firm because they are so strong and they've got so many good players.
"When they're on the back of a defeat, I'm sure case history will tell you that both sides can happen - they can be lacking in confidence or it can engender great spirit to come back and win the game.
"I'm sure there could be the element of the wounded tiger but I can't answer that until I see them play."