A Croatia international centre-half is generating exit talk at Anfield with the summer transfer window open.
It has been suggested that a switch to Italy could be on the cards, with San Siro mooted as a possible destination for the 29-year-old.
Lovren does still have two years left on his contract at Liverpool and has taken in 170 appearances for the club across five seasons.
He has, however, slipped behind the likes of Virgil van Dijk, Joe Gomez and Joel Matip in the pecking order, with there the promise of more arrivals to come.
With that in mind, and while recognising all of the hard work that he has put in since arriving from Southampton in the summer of 2014, Nicol believes Lovren should be offloaded.
The former Reds defender told ESPN FC when asked if an experienced performer could generate the kind of fee being talked about: “Yes he’s worth £25m, yeah, absolutely.
“No [I would not keep him]. You have Gomez, you have Matip.
“Lovren’s been a good servant to Liverpool.
“That would be fantastic if we did get De Ligt.
“But Lovren’s been a good servant.
“Just because on occasions he’s made horrendous mistakes and we’ve picked him up on it, it doesn’t meant that I don’t like the guy.
“The guy’s got a big heart and he’s given everything for Liverpool. He’s played well on occasions.
“He gives you everything, sometimes to the detriment of his performance because he’s so eager and so keen to do well that he throws himself into challenges when he shouldn’t.”
Liverpool are among those said to be keeping a close eye on De Ligt’s situation at Ajax.