Nichol coached the under 16 Vic Metro academy program and was an assistant coach at Oakleigh Chargers in 2011. He was also head of health, sport and physical education at Scotch College Junior School.
He had previously been an assistant coach at Box Hill in the VFL.
The 36-year-old played three matches for Western Bulldogs in 1995.
Nichol made his AFL debut against Collingwood in round 12, 1995.
A key position player, he played in the Bulldogs reserves premiership team as a supplementary list player in 1994.
He was then drafted by the Bulldogs in the 1995 Pre-Season Draft (No.37 overall).
Nichol will work closely with Jade Rawlings, who was recently appointed Melbourne’s backline coach.
Former defensive coach Brian Royal will now oversee the midfield, with Aaron Greaves the development midfield coach.
And the recently retired Leigh Brown will coach the forward line, with Paul Satterley the development coach in attack.
These changes are on top of Melbourne’s significant appointments: Mark Neeld as senior coach, Neil Craig as director of sports performance and Dave Misson as elite performance manager.
Todd Viney, who stepped in as interim coach late last season, now has an expanded position as general manager of player development and strategy.