Nichols played a key role for Perth Glory in season 2014/15 before departing towards the end of that season to resume his contract with J-League club Cerezo Osaka.

His form over the last two years has been pivotal in helping the Western Sydney Wanderers secure consecutive finals berths.

The 27-year-old will start his new tenure at Perth serving a four-game ban after what Glory described as "recent indiscretions".

Nichols was arrested and charged with possession of cocaine last month following a random sweep by police at a venue in Double Bay. Football Federation Australia has confirmed the ban can be served from the upcoming FFA Cup matches.

Nichols hit with four match ban

Nichols in his Glory days

Coach Kenny Lowe said bringing the player back to nib was an easy decision.

"Mitch has the pedigree to be a game changer,” he said.

"Nichols has the personality, skills and football qualities to be an influential member of our team and assist the club achieve success.

"(He) has matured as a player and that maturity has been highlighted by captaining his previous club and through his form over the last two years in the A-League which we are keen for him to replicate at our club."

The Queenslander said he was looking forward to settling back into life in Western Australia.

“I’m really excited about re-joining my friends in Andy Keogh, Rostyn Griffiths and Chris Harold and several new teammates such as Diego Castro, Adam Taggart with a new look Glory team as well as reuniting with former WSW teammate Scott Neville.”

Glory CEO Peter Filopoulos said Nichols would be a key factor in the club's pursuit of a maiden A-League championship.

“Several other A-League clubs bid for Mitch’s services and we are glad he has opted to return to nib Stadium and don the purple once again,” Filopoulos said.

"Despite some of Mitch’s challenges of recent times, everyone deserves a second chance. Mitch just like all players at Perth Glory are aware of the club's core values as well as the FFA’s national code of conduct and the strong consequences if they are not adhered to.

“We are building a strong culture here at Perth Glory and at the heart of our core values is that no player or individual is bigger than the club as we strive to achieve our objectives under The Perth Glory Way"

Glory squad at this time:

Liam REDDY – Goalkeeper
Nick FEELY – Goalkeeper
Jacob POSCOLIERO – Defender
Shane LOWRY – Defender
Alex GRANT – Defender
Marc WARREN – Defender
Joseph MILLS – Defender
Scott NEVILLE - Defender
Chris HAROLD – Midfielder
Rostyn GRIFFITHS – Midfielder
Brandon WILSON - Midfielder
Joel CHIANESE – Midfielder
Mitch NICHOLS – Midfielder
Diego CASTRO - Midfielder
Joseph KNOWLES – Forward
Andy KEOGH – Forward
Adam TAGGART – Forward
Jamal REINERS – Forward