Please Wait . . .
After months of speculation suggesting that a highly-rated RB Leipzig striker would be heading to Anfield, it now appears as though Stamford Bridge will be Werner's next port of call.
Chelsea have a ?54 million (EUR60m/$68m) deal lined up, with Frank Lampard acting decisively as others have left the door open.
Liverpool had seen a highly-rated Germany international pave the way for them to make an approach, with the general consensus being that Jurgen Klopp should table a bid.
There has, however, been no movement at Anfield and a seemingly top target could now end up on the books of a Premier League rival.
Nicol fears the Reds will be left to rue that decision, with it having been clear for some time that greater depth is needed in Klopp's attacking ranks.
Mohamed Salah, Sadio Mane and Roberto Firmino are a well-established and fearsome front three, but there is little cover behind them on Merseyside.
Werner would have been a proven alternative for Klopp, but fierce competition for places at Liverpool may have contributed towards the 24-year-old turning his attention elsewhere.
Former Liverpool star Nicol told ESPN FC of the Reds' failure to get an agreement in place: "I think it is [a mistake], yes.
"Regardless of how good you are, you have to make sure you stay where you are at the very least. That means you need competition for places.
"No question, Werner would have given the front three - as great as they are and have been - it would have kept them on their toes.
"The front three of Liverpool can now breathe a little easier.
"I think Liverpool have slipped up here.
"Saying that, I wouldn't be surprised if Werner had something to do with this.
"At the end of the day, if you want to go somewhere you can make it happen. It looks to me like Werner has changed his mind."