Nicholls, a Scouser, is currently keeping Scott Carson, another former Reds goalkeeper, out of the Latics team and was retained for the weekend's clash with Derby County despite making a high-profile error in the Europa League defeat to Belgian side Zulte Waregem last week.
According to Alan Nixon of Mirror Football though, that mistake hasn't deterred Liverpool boss Brendan Rodgers, who would like to see a younger goalkeeper act as deputy to current Reds No. 1 Simon Mignolet.
Brad Jones is the man currently in possession of the No. 2 spot, but the Australian is 31 and must have a desire to one day get some first-team football elsewhere.
In Nicholls, perhaps Rodgers sees a long-term backup option that he will be able to rely on for years to come, however the player himself might decide to stay at Wigan and continue making appearances in the team. He's played nine times so far this season following earlier loan spells at Hartlepool, Shrewsbury, Sheffield Wednesday, Accrington Stanley and Northampton.
Much will depend on who the Latics appoint as a new manager following the sacking of Owen Coyle, but perhaps the prospect of a move home for Nicholls, capped once for England's Under-19s, could be too hard to resist.