But former Gunners star Nicholas thinks trimming Mikel Arteta's squad could fund a bumper new deal for the 30-year-old.
Nicholas told Sporting Life: "Mikel Arteta wants five or six out and he wants that money to rebuild. If nothing more is in the pot, sell to rebuild.
"If you are doing that as a financial package, you are not buying to replace Aubameyang.
"You can get rid of Shkodran Mustafi and Henrikh Mkhitaryan, who has been out on loan. This will all help to filter through, so there are easy things to do.
"Give him what he wants, get rid of dead wood, you have the kids, and it would not cost £200m to challenge for the top four once more."