Ozil is one of several Arsenal players locked in contract renewal talks with the club.
The German has less than 15 months left on his current deal and is no closer to reaching an agreement.
Arsenal line-up predicted to face Crystal Palace
Fri, April 7, 2017
Express Sport predicts who will start for Arsenal in their clash with Crystal Palace at Selhurst Park on Monday (8pm)
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Who will Arsene Wenger pick in his Arsenal starting XI against Crystal Palace?
For Wales, Ramsey plays in the number 10 position favoured by Ozil.
And Nicholas reckons Ramsey will not displace Ozil should he remain at the Emirates.
Arsenal stars Aaron Ramsey and Mesut Ozil
He said on Sky Sports: "If Ozil signs, he'll [Ramsey] go.
"Because he plays that role, Cazorla is coming back next season [even though] he's getting on in years.
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"Where's he going to fit in?"