Martin was sacked on Sunday, barely over a month into the season at Ibrox, having been appointed in June.
It's his second dismissal in two years, after he was axed by Southampton in the Premier League last season.
For Nevin, Martin should step back from football and lick his wounds before returning to management.
"To be honest, there are times in a coach's career when if you want to keep on coaching, you probably need such a different break, and it might have to be continental," he told Tribal Football.
"I don't think it's going to be in Scotland (Martin's next job). I don't think it's going to be in England unless he drops to a lower level.
"He's not going to get a top-level job in Scotland because he was so pilloried and given such a tough time in Scotland.
"And it was such a... I do use the word disastrous. You know, it won't all be his fault. You know, the team wasn't great beforehand, but you watch them this season, and it's just unthinkable how difficult it's been for Rangers.
"Considering, comparing them, the money that they've spent, not with Celtic but with all the other teams, and you're bottom half of the league and not looking any better than that.
"I mean, I was covering one of the games in Europe, the big one was in Belgium, and they got absolutely battered, and it could have been nine or 10.
"And for Celtic or Rangers, that's just not acceptable. And it shouldn't be acceptable, because although they're not Premier League teams in England with that sort of money, they've got money. They can buy players.
"So, for Russell Martin, the next one? I think a wee rest for a while."
Pat Nevin was speaking with Tribal Football on behalf of BetWright.