The Watford star has impressed in the Premier League this season following his move to the Hornets from French outfit Rennes.
Doucoure scored seven goals and made three assists in 37 appearances in the Premier League in the 2017-18 season.
The 25-year-old scored against Liverpool FC and Manchester United in an impressive second campaign in the English top flight.
Arsenal struggled in the 2017-18 season and Arsene Wenger called time on his rein at the end of the campaign following 22 years in north London.
Granit Xhaka has been disappointing since his £33m move to Arsenal from Bundesliga outfit Borussia Monchengladbach in the 2016 summer transfer window.
While Nicholas named Doucoure as Watford’s player of the season, the Arsenal legend is hopeful the French midfielder will be an Arsenal player next term.
“It has to be Abdoulaye Doucoure by a distance,” Nicholas told Sky Sports. “Even watching them lose to Spurs last Monday, his energy and movement stood out.
“I’m not a big holding midfield fan but he could easily do that and more for Arsenal with the way he covers the ground. Everton will surely be looking to snap him up as well.”
Arsenal finished in sixth place in the Premier League table following a difficult season on the road for the Gunners.
The north London side lost 2-1 to La Liga giants Atletico Madrid in the Europa League semi-finals.
The Gunners suffered a resounding 3-0 defeat by Premier League champions Manchester City in the League Cup final at Wembley back in February.
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