His sacking also comes in the wake of heavy speculation that Gerrard is heavily backed to take the helm at Rangers in the summer.
The Daily Star claim on their website that the Light Blues have finally agreed a deal with Liverpool legend Steven Gerrard to take over as their manager, replacing the very recently sacked Graeme Murty - who himself could make a return to Ibrox.
Asked about the possibility of taking the job, Gerrard told BT Sport: "There's truth in the rumours".
"I'm busy for a couple of days now and I'll pick it up on Thursday and we'll see if we can progress it".
"There is [interest]. I've held positive talks with them".
The 37-year-old's only previous coaching experience has come at Liverpool, where he has spent almost a year managing the Under-18s side.
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They say sources close to Gerrard have told them that he is viewing a potential stint at Rangers as the ideal stepping stone to one day succeeding Jurgen Klopp at Liverpool.
Nicholl, 61, will take the lead role in trying to lead the Ibrox squad through a testing trio of matches.
Rangers look set to finish third in the Scottish Premier League after being humiliated by Celtic 5-0 on Sunday, with a lot of people making Gerrard aware of the size of the task at hand.
"Graeme has had to contend with hard and challenging circumstances but conducted himself in a thoroughly professional manner".
"He has cut his teeth at Liverpool with the young lads there and at some point Steven is going to step out of that and go into managing men, managing a first team".
The Ibrox is seen by Gerrard as the "perfect environment" to prepare him for the Liverpool hot seat.