The Gulls parted company with Nicholson this morning - but they won’t be making a quick appointment.
Herrera will take the team at Guiseley on Saturday as United look for their first National League win of the season.
A further statement was released by the club to confirm the plan for this weekend.
"The search for a new manager has already begun, and we welcome all applications for the position," said the Gulls this afternoon.
"While we now move forward with a new direction, all of us connected with the club would like to thank Kevin for everything he has done for Torquay United.
"As a player, he goes down as one of the United greats, a committed and talented full-back, and a member of some of the best sides to have graced Plainmoor in recent memory.
"As a manager, Kevin has worked tirelessly to bring success back to the club. His work in the community has been outstanding and an example for future managers.
"We all know football is a results business and this is a sad day for all of us at Torquay United. We wish Kevin every success for the future."