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Dybala is closely linked to the move to Manchester United after a frustrating season at Juventus
Former Spanish international Mata is expected to leave Old Trafford at the end of the season, his contract ending.
Nicol admits that Dybala is likely to generate huge fees, but feels that this would be a necessary signature as United seeks to rebuild his team under the orders of Ole Gunnar Solskjaer.
"It's a strange case," Nicol told ESPN FC.
"There is no doubt that Dybala has the ability.
"But if you look at Serie A, five goals and four badists in a Juventus team that are well ahead of everyone else.
"So I do not know how much Man United would buy it, but I think it would help them.
"All you can do is replace the players with better ones.
"And to go ahead, Dybala, for me, Juan Mata for example, who will leave, he is better than him.
"United must start recruiting, it must be done quickly.
"I think Dybala, at 25, is the ideal age to go to Man United.
"Well no, they are not [got enough money to buy a whole new team].
"Listen, Man United probably needs seven or eight players.
"But they have to bring quality and quality costs.
"So you can not expect to group all sides in one window.
"It will take two or three windows but Dybala would be a good start, no doubt. Great player."
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