Two-time winner Kauto Star has been passed fit to compete in this Friday's Gold Cup at Cheltenham.
The 12-year-old's participation had been thrown into doubt following an injury that was sustained during a fall.
However, having completed a session with jockey Ruby Walsh earlier today, Nicholls has confirmed that the French-bred horse is in good shape ahead of the race.
"I have given Kauto Star the green light for the Cheltenham Gold Cup after a very good schooling session on the grass this morning," said Nicholls.
"Ruby came over to school him and Kauto was awesome, just as I'd thought he would be.
"He jumped six fences - the plain fence and the open ditch three times each - and he was foot perfect and looked magnificent, as you can see from the picture."
Kauto Star last won the Gold Cup in 2009.