Nicholson has been named on the interchange, along with the speedy Jamie Bennell, run-with midfielder Jordie McKenzie and hard-nut James Magner.
Defender Joel Macdonald, the yet-to-debut Troy Davis and the long-kicking Luke Tapscott have been named emergencies.
Nicholson, who made his AFL debut against Carlton in round 10 last year, played nine matches last season.
He was elevated onto the primary list on Thursday, after Melbourne placed ruckman Max Gawn onto the long-term injury list.
On Thursday night, the Demons reacted to last round’s 101-point loss to Sydney Swans at the SCG by leaving out key trio Aaron Davey, Colin Sylvia and Cale Morton.
Coming in as their replacements and into the starting 18 were utility Rohan Bail, versatile tall James Sellar and forward Lynden Dunn.
Forward Liam Jurrah was a forced omission, after he sustained an ankle injury against the Swans. He will miss the next four to six matches.
Davey, Sylvia and Morton have all had frustrating seasons, hampered by pre-season injuries.
Although Davey had only missed just one match this season - the 106-point loss to West Coast Eagles at Patersons Stadium in round two, when he was an emergency - he had a interrupted preparation.
Sylvia was sidelined for the opening three matches with a back injury and was forced to miss round four, as he still had a one-match club suspension to serve, which was initially set for round one.
This carried over from an off-field incident last year, when he was suspended from the Australian International Rules team.
Sylvia’s back injury occurred when he hit the deck hard after a marking contest during Melbourne’s final NAB Cup clash against Port Adelaide at AAMI Stadium.
He returned in round five as a substitute and also played the next three matches.
Morton hurt his knee following Melbourne’s intra-club clash in February this season, but has since played six matches from rounds three to eight.
For Bail, he returns after being an emergency last round. It was the first game he missed for the season.
Sellar is back in the team after missing the past two matches with a calf injury, while Dunn has been recalled after a fine display for Casey against Box Hill two weeks ago (the Scorpions had the bye last round). Both players have featured in five matches for the Demons in 2012.
Melbourne team
B: James Frawley, Jared Rivers, Clint Bartram
HB: Jack Grimes, Colin Garland, Tom McDonald
C: Rohan Bail, Brent Moloney, Sam Blease
HF: Jack Trengove, Jack Watts, Brad Green
F: Jeremy Howe, Mitch Clark, James Sellar
FOLL: Mark Jamar, Lynden Dunn, Nathan Jones
I/C: Jamie Bennell, Jordie McKenzie, Daniel Nicholson, James Magner
EMG: Joel Macdonald, Luke Tapscott, Troy Davis
IN: Rohan Bail, James Sellar, Lynden Dunn, Daniel Nicholson
OUT: Liam Jurrah (ankle), Aaron Davey, Colin Sylvia, Cale Morton
