Liverpool did end a poor run of form with a 2-0 win over a struggling Everton side in the Merseyside derby on Monday but the Reds have looked inconsistent all season.
They are sitting ninth in the Premier League standings and are now facing the daunting task of taking on Real Madrid in the last 16 of the Champions League.
Real Madrid are not coming into the game in scintillating form either and their inconsistent performances have led to Barcelona opening up an eight-point lead at the top of La Liga.
However, Nicol stressed that despite the struggles of Real Madrid, there is still an expectation of them winning games when they get on the pitch.
He conceded that there is no confidence around the current Liverpool side and they do not look like winning any games at the moment.
The Liverpool legend said on ESPN FC: “I am a worried man.
“You can say that Real Madrid are struggling, but you still expect them to win when they step on the field.
“You can’t say that about Liverpool right now, you don’t expect Liverpool to beat anybody right now.
“That’s the honest truth.”
Liverpool have a tough trip to Newcastle United lined up on Saturday before they host Real Madrid in the first leg of their last 16 tie on Tuesday night.
