Ronny Deila's future as Celtic boss is currently unknown.
The Norwegian boss’s future at Parkhead is in serious doubt, with his contract due to expire in the summer.
Deila is losing support by the game at Celtic, with a large volume of their supporters calling for him to be sacked after they were beaten by Rangers last weekend.
However, Nicholas warns that Celtic will struggle to attract a big name boss if they do part ways with Deila, as their policy does not make them an appealing club to join.
“I think in the summer there will be a change but, then again, the type of managers who always get linked with it - they talked about David Moyes, Malky Mackay, Roy Keane - they tried to get him and couldn't convince him,” the former Scotland international said.
"Celtic have to change their policy, they have to get a manager who becomes a footballing manager who has got control of the football team, who can bring in players. You don't let accountants and scouts go and do that job for you. They have to change, they are too stale and if they stay stale they will struggle to get a top name manager.”
Deila won the domestic double in his first season at Celtic, and he looks set to win the Scottish Premiership title once again this time around.
The Bhoys’ failure in Europe has frustrated supporters, though, and their recent defeat in the Old-Firm derby has annoyed the club’s supporters even more.
There are no plans for Deila to be sacked yet, but it seems unlikely that he will be offered a new deal at the end of the season.
David Moyes, Neil Lennon and Michael O’Neill are currently the bookies’ favourites to become the next Celtic boss.