The 19-year-old, who has made nine appearances for the National League club, has reportedly been on trial at the Championship side this week.
Nicholson told a press conference: "If it happens, the deal has to suit both clubs and suit Dan. He's a young man with a fantastic future ahead of him.
"The reports I've had is that he's done very well up there. They're very keen on him so we'll wait and see. He's got the build, he's got the physique, he's still developing physically, but the most impressive thing for me is his character, how calm he is."
Lavercombe was one of the final players to come through Torquay's now-defunct youth academy and made his debut in April, keeping three clean sheets last season.