The England international has struggled to hold down a regular starting spot in the Liverpool FC team over the past 12 months or so.
Lallana has struggled with a strong of injuries problems, while the former Southampton captain has fallen down the pecking order.
The 31-year-old has less than 12 months left to run on his current deal at Liverpool FC, which means Lallana will be available on a free transfer next summer.
Former Liverpool FC defender Nicol believes that the Reds could end up selling the attacking midfielder in the current transfer window.
“I think it’s pretty clear the odd man out in that lot is Lallana,” Nicol told ESPN FC. “At his best he can give you a little sparkle.
“Unfortunately, in his time at Liverpool, he’s not really been at his best very often.
“So right now, for me, he is the one completely on the out.”
Lallana moved to Liverpool in a £20m deal from Southampton in the 2014 summer transfer window.
The England playmaker has netted 21 times in 156 games in all competitions over the past five seasons.
Lallana was an unused substitute in Liverpool FC’s 2-0 victory over Tottenham Hotspur in the Champions League final in Madrid last season.
Liverpool FC finished in second place in the Premier League table last term and just a point adrift of champions Manchester City.
The Merseyside outfit have only signed 17-year-old Dutch defender Sepp van den Berg in a £1.6m deal from FC Twolle earlier this month.
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