The 21-year old, who has been in stellar form coming off the bench this season, is out of contract at the end of the current campaign but his performances have given him a strong chance to be offered a new, upgraded deal by the Roar.
Nichols' agent, Tony Rallis, suggests his client could be tied up very soon.
"I'm confident it'll be a done deal very soon," he said. "It's not just about the money, but Mitch's new contract will reflect his market value."
And according to Rallis, the Roar would be silly not to snap the Australian youth international's services up as he has the makings of one of Australia's greats.
"I compare him to (Tim) Cahill because of his positional play, and I think Mitch is a better passer of the ball and is quicker than Cahill," Rallis added.
"But his dedication, desire and discipline needs to match Cahill's."