Carroll has impressed on-loan at West Ham United.
Nicol told talkSPORT: "I would like to see Brendan bringing him back and having him there as an option.
"Throughout the season he has changed his systems and I think he has done that because of the personnel that he has had, which is a good thing because it means he is a good coach who can adapt to what happens during the season. But I think Andy Carroll would be a huge fillip for Liverpool next season.
"He didn't have the greatest of seasons at West Ham with injuries but you would have to think that wouldn't happen again next season. To have him there, you just don't know."