Liverpool look set to bolster their attacking options this summer.
Liverpool have been linked with Sporting Lisbon's Gelson Martins and Roma wide man Mohamed Salah.
But Nicol's reckons Costa should be a top target.
"I'll take him at Liverpool absolutely," he told ESPN FC.
Jurgen Klopp's shown he can sort out young players so absolutely.
"The guy's got ability, no question. Considering the quality he's got and he's not quite matured yet, I'm sure most coaches think they can turn young players around.
"I think he would be a good signing for Liverpool."
European football expert Raphael Honigstein says the Bundesliga champions will be willing to let him leave the Allianz Arena.
Costa immediately impressed at Bayern Munich having switched from Shakhtar Donetsk in 2015, but has since struggled to nail down a regular starting place under Carlo Ancelotti.
The 26-year-old Brazil international scored seven goals and provided nine assists in all competitions over the past season.
With his speed and versatility, he would certainly fit the bill regarding Klopp's requirements.
German news outlet Bild have stated Liverpool are tracking the £35million-rated Costa, but they're not alone.
Juventus, Manchester City, Manchester United and, inevitably, Tottenham Hotspur are among those also being linked.
Image credits to Getty Images.
This story has been reproduced from the media. It does not necessarily represent the position of Liverpool Football Club or Red's Fury™ blog.
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