Techincal co-ordinator Sherwood is in temporary charge following Andre Villas-Boas' departure and will pick the side for today's Super Sunday game at St Mary's.
Mauricio Pochettino's young team - many provided by the Saints academy - has earned plaudits this season, and Sherwood believes youth development should be a priority for the next Spurs manager.
"If something happened on a longer term with me it would be addressed," said the former Spurs midfielder, who has worked intensively with the club's younger players in his five years on the coaching staff.
"The last thing we would want to do is stunt their growth because there are some top young players down there ready to step up.
"You want to keep them (young players) at your club, you have worked hard since they were eight years of age and you were bringing them through, but they can't all stay.
"Sometimes the manager and the board have to make a decision to bring in what they perceive is extra quality and if you make that decision you have to live and die by it."
Sherwood is expecting a tough afternoon down at St Mary's on Sunday.
"Nigel Adkins was doing a good job before him and it was a surprise to everyone that he left the club, but that shows you the nature of football," he added.
"Pochettino has gone in and it seems like he has taken them on, but it is still early days for him. It will be a very tough game for us down there.
"We know what to expect from Southampton, he has got his team playing a very high, pressed game with a quick tempo and lots of young, English players down there."
Watch Southampton v Tottenham and Swansea Everton live on Sky Sports 1HD from 12.30pm, or for just £4.99 with a NOW TV day pass. Visit http://www.nowtv.com/promo/halfprice to redeem offer.