The 25-year-old French international has attracted attention from a host of clubs across Europe after impressing in Ligue 1 with 13 goals already to his name this campaign.
Magpies boss Alan Pardew is understood to have targeted Giroud in January as a replacement for Modibo Maiga, after the Sochaux striker failed his St James' Park medical.
However, Gunners chief Arsene Wenger has also been credited with an interest in bringing Giroud to the Emirates Stadium, and may rival Newcastle for his signature.
Nicollin admits he is unsure how serious Arsenal are about signing Giroud, especially after he revealed the player is unlikely to leave Montpellier for less than €50million.
"Newcastle? They are too small for him," the supremo told RTL. "Arsenal? We must see if Arsene Wenger is interested because he has Van Persie.
"€10m? He won't go for that. Given that he still has more than two years left on his contract, he'll cost a lot more, either €50m [£41.7m] or €60m [£50m]."