Van Dijk has been heavily linked with an exit from Southampton following an impressive spell with the south coast side.
The Dutch centre-back has told Liverpool he wants to join them ahead of other potential suitors in Manchester City and Chelsea.
Former defender Nicol admits he has been impressed with Van Dijk this season but says he reminds him of Dejan Lovren, who made the same move three years ago.
"I do (like the deal), not at the price £60million," Nicol said on ESPN FC.
Steve Nicol believes Virgil van Dijk is like Liverpool defender Dejan Lovren Paper gossip: Liverpool eye £60m Van Dijk move, Chelsea Hazard blow, Tiote tribute Mon, June 5, 2017
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When I think of Virgil Van Dijk I think of Dejan Lovren
Steve Nicol on Liverpool target Virgil van Dijk
"When I think of Van Dijk I think of Lovren. Lovren at Southampton was fantastic, as have Van Dijk has been.
"But Lovren since he's come to Liverpool has shown that he can't handle playing for a big club.
"That would be my one worry about Van Dijk. He's had a great season, unfortunately he's had an injury at the end of it. Will he be able to play for a big club? That's my worry."
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Steve Nicol and Shaka Hislop both have doubts over Liverpool spending £60million on Virgil van Dijk
Former West Ham goalkeeper Shaka Hislop also believes the price tag is a high for the 25-year-old, but admits that is the going rate these days.
"Unfortunately I think this is the sign of the centre-half times, so to speak," he said.
"I mean everybody is in desperate need of centre-backs but there aren't a whole lot of good ones out there.
"That more than anything is forcing the price up but still £60million for Van Dijk is an awful lot of money."