The club had an option to take up for the 34-year-old to play on next year and has enacted it.
Nicholls ran 20m, at speed that won rave reviews from his coach Wayne Bennett, to score a rare try last week in the 30-24 win over Manly. He also made a clean line break a week earlier against North Queensland in a comeback 28-26 victory.
Aside from that, Nicholls has been enormous in the middle with the club missing representative forwards Tom Gilbert and Thomas Flegler.Â
Nicholls has thrived under Bennett, previously at South Sydney and now at the Dolphins.
He will not finish his career under Bennett, however, who will likely return to the Rabbitohs next season. The 'Goat' was adamant that he was not ready to be put out to pasture just yet and can't wait to play under Kristian Woolf in 2025.
"I am really enjoying my footy and coming to training," Nicholls said.
"I think the Dolphins as a club and team are really building and heading in a good direction and I want to be part of that.
"The Sydney life is not for us. Me and the wife and the kids enjoy the southeast Queensland sun too much."
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Nicholls has scored 12 tries in his 158-game career but none as thrilling as last week.
"I don't think I've scored any tries more than five metres out and I got the ball with 20 metres to go," Nicholls said.
"It was a bit foreign to me and I think my head was trying to get their quicker than my legs could go. Fortunately for me there were no Manly players there to run me down."
Nicholls said he was just waiting for a sponsorship deal from Nike.
"I'm yet to hear. It's crickets from Nike," Nicholls grinned.
"You know where to find me ... @markynico on Instagram if you want to give me some Nike boots. I am a try scoring machine."
Nicholls will line up at prop in the Magic Round clash with Wests Tigers on Sunday at Suncorp Stadium, the same side the Dolphins beat 26-16 at the venue in round five.
"We didn't put them away until late and while they have lost a few games since they have been close," he said.
"We know they are going to turn up and put in a good performance. We have been going win-loss a bit so it is very important for us to turn up and put in a good performance, as we did last week."
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