While other media outlets have predicted the West Yorkshire outfit will make an immediate return to the Championship, the Scot believes he has done his homework on David Wagner's side.
The former Celtic and Arsenal favourite has backed Wagner to pull a few surprises as the Terriers embark on their first campaign in the top-flight for over 40 years and has tipped Town to finish in 17th place.
"You get the feeling that this guy is going to be good to watch. He's going to speak his mind and agitate a few managers."
Nicholas has praised the club for doing their transfer business early, giving Wagner time to mould his team, while other clubs are playing the waiting game.
The 55-year-old says bringing Aaron Mooy back to the club was a no-brainer and should the German keep the Terriers in the Premier League, he will be a contender for manager of the season.
He said: "Well you can't deny David Wagner has the right to have a good crack at the Premier League" Nicholas told Sky Sports, "You get the feeling that this guy is going to be good to watch. He's going to speak his mind and agitate a few managers.
"He's also got that Jurgen Klopp mentality where he won't fear making big decisions if things aren't going well." Nicholas claimed, "He's an aggressive guy and aggression is good when you're in control of it and he looks like that sort of guy.
Winning your home games is the priority
The Scot has warned Wagner that he will have to adopt different game plans to get results and picking up points at the John Smith's Stadium will be key.
"What he needs to learn is you can't keep treating every game like a cup final, your legs will run out. Sometimes you've got to turn up and grind out a result, avoiding the demoralising result, and just make sure you're ready to go again at the games which they need to win.
Nicholas also said that trips to the big sides will be games they may have to accept they will get little from, but they need to bounce back and win the home games that they need to.
Huddersfield kick-off the season with a trip to Crystal Palace on August 12.