The Dutchman replaced Jurgen Klopp in the summer and has not yet put a foot wrong.
The Reds are top of the Premier League and have been hugely impressive in most of their games.
“I can’t turn around and say I expected it (on Liverpool's nine wins out of 10),” Nicol told ESPN UK.
“Most of us, including myself, were expecting some teething problems.
"Clearly, there was going to be some sort of a shift from Jurgen Klopp to Arne Slot. But they’ve managed to do it while winning games, and that’s the key.
“And how secure does Arne Slot sound? He’s saying all the right things and is really confident. He’s not afraid to say what a great squad he’s been left behind by Klopp.
“He really sounds like a guy who knows what he’s doing and what he’s talking about. He wants to be remembered for what happens at the end of the season when they are picking up trophies.”
“Is that the resume of somebody to lead a club the size of Liverpool back to the Premier League title and the Champions League? I mean, I can't honestly say that,” Nicol had said earlier this year while discussing Slot on ESPN.
“All the other boxes have been ticked, the way they play the game, the way he goes about it, he's going to be able to coach.
“But is it really a resume to take over one of the biggest clubs in the land? I'm not sure it is, but what are the alternatives? This one's difficult, don't you think, because, number one, there's not a Klopp out there."