Maguire is Manchester United’s priority centre-back target in this transfer window.
However, Leicester City want a world-record fee for a defender of around £80million for the 26-year-old.
Nicol says United must stump up the cash the Foxes want as Maguire would make a big difference to their back line.
But he does not think the England man will be able to carry United into the Champions League qualification spots and believes they need plenty more additions to their squad.
“Manchester United have no choice,” Nicol said on ESPN FC.
“They have to go and get Harry Maguire because if they don’t they’re going to have a huge hole at the back.
“Don’t get me wrong, Harry Maguire is a great player, but he’s not the best in the Premier League, that’s for sure.
“I don’t think he’s close to [Virgil] Van Dijk.
“The problem is there aren’t that many good centre-backs around.
“Manchester United find themselves in a position where they have no choice but to go and spend money.
“Leicester absolutely have them dangling on the end of a string.
“If Leicester want to sell, Man United are going to have to pay a lot of money.
“He will help them towards [the top four] – they need an awful lot more than just one centre-back.
“But he will definitely, defensively, make a difference.
“The guy leads, there’s no question, the guy’s reliable, you know what you’re getting.
“He’s a proven commodity in the Premier League and he’d be a great signing.
“But they need way more than Harry Maguire.”
