Oxlade-Chamberlain switched Arsenal for Liverpool on transfer deadline day in a deal worth up to £40million.
The England international played in numerous positions under Arsene Wenger at Arsenal but was never given a run in his preferred role in central midfield.
He chose a move to Liverpool over Chelsea as he felt he had a better chance of breaking into the midfield at Anfield.
Heskey thinks the 23-year-old is a great signing but speaking as a former striker, reckons he would be better deployed on the flanks.
“I think it’s a great move for Liverpool,” Heskey said on Sky Sports.
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“It just adds strength in depth, pace, which they’ve got in abundance.
“It’s someone else that can give that. I know there has been a lot said about him playing in midfield, I think he wants to play central.
“But he gives you different options, he can play on the right or left and central, so it’s a great addition.
“I’ve watched the pace of the lad and I would have him out wide.
“But he has done well in central midfield as well, he’s made some commanding performances in there, so why not?”
Oxlade-Chamberlain starts on the wing for England in their World Cup qualifier against Slovakia this evening (7.45pm).