Ross Taylor's inability to recuperate from a left side strain saw him left out of the first test squad to play Australia in Wellington. His fitness will continue to be monitored ahead of the Christchurch test.
The loss of Taylor's experience is immense. The 31-year-old scored 290 against Australia at Perth in November. That surpassed England batsman Tip Foster's 287, a 112-year-old record for the highest test score by a visitor to Australia.
Two of Taylor's 13 test centuries have come against Australia and, in four innings at home against them in 2010, he averaged 51.50 at the extraordinary test strike rate of 98.
The last test Taylor missed was two years ago against India when Brendon McCullum made his triple century and Tom Latham debuted in his place. Taylor awaited the birth of his son, Jonty.
Nicholls is expected to replace Taylor at No 4, unless McCullum opts for an elevation in his world record 100th consecutive test since debut.
Nicholls' 61 off 67 balls in the opening ODI against Australia at Eden Park on Wednesday, and match-winning 82 against Pakistan at the Basin Reserve, underlined his development this summer.
However, he played his first-class trump card during the tour by Sri Lanka "A" in October.
The 24-year-old made consecutive first-class centuries of 144 not out and 137 at Lincoln. His first-class average is 38.54, with four hundreds in 35 games. Each of those centuries has come in the past two seasons, in which he has made 1200 runs at an average of 54.55.
Regardless of what could be a one-off test introduction, Nicholls appears poised to be anointed as McCullum's successor at No 5 once the team head to Zimbabwe, South Africa and India mid-year.
Coach Mike Hesson said Nicholls, a New Zealand Young Player to Lord's in 2012, deserved his selection.
He said it was a squad picked with conditions in mind.
"Henry has been impressive the way he's made the step up to international cricket and we're confident of the job he can do for us in the top order."
Of the other selection issues for the coming week, BJ Watling's back niggle faces continued scrutiny, with Luke Ronchi named as cover.
Matt Henry and Corey Anderson received recalls while Mitchell Santner was named as the only spinner, meaning no place for Mark Craig after his struggles in Australia.
Tim Southee returns to the international game after recovering from a bruised bone in his left foot, boosting the pace bowling stocks to five.
"We've gone for just the one spinner in Mitch [Santner] and that's based around what we expect the pitches to play like at Hagley and the Basin," Hesson said.
"Tim's a leader within our group and our most experienced bowler, so we're excited to have him fit."
"Matt also comes back into the squad after some strong performances throughout the summer and, with Corey's return, we now have a number of seam bowling options to consider."
NZ test squad
Brendon McCullum (c), Corey Anderson, Doug Bracewell, Trent Boult, Martin Guptill, Matt Henry, Tom Latham, Henry Nicholls, Mitchell Santner, Tim Southee, Neil Wagner, BJ Watling/Luke Ronchi, Kane Williamson.
- Andrew Alderson