Last month, Nicholson was convinced his Olympic career, which started at the 1984 Los Angeles Games, was over. The latest move hints at a reprieve.
"I thought it's only right I put the nomination in to be considered," said Nicholson, who is set to achieve the rare feat of riding three horses -- Nereo, Avebury and Perfect Stranger -- in the defence of his four-star Burghley title next month. "If you're not in that position, you can't be considered, but there's still a lot of things to be agreed before I get back in with ESNZ."
The detente has been helped by Nicholson's decision to team up with Valerie Adams' manager Nick Cowan who smoothed the path towards getting the rider's signature on the nomination form and it's hoped he will eventually sign the mandatory athlete agreement after further negotiations.
"They can be difficult documents for athletes to sign," Cowan said. "Often what happens is that the balance between performance-oriented objectives and governing body requirements gets out of kilter. In Andrew's case, my early assessment is that a lot of history is influencing what's happening now, at the expense of performance goals.
"Viewing from the outside, I found myself frustrated and thinking, 'it must be resolvable'. This is a guy who just wants to go to the Olympics and win a medal. Let's create an environment where that's possible."
Efforts to contact ESNZ chief executive Vicki Glynn yesterday were unsuccessful. Last month, Glynn said talk of Nicholson's Olympic career being over was premature.
"The selectors can exercise discretion [and bring him back into the squad]. We would encourage him to send in his [Olympic] application. There's no barrier to him doing that.
"He just needs to sign an athlete agreement for him to come back.
"We appreciate after what has happened that there might be special circumstances, which we're prepared to amend to meet his needs."
ESNZ received $2.05 million of taxpayer high performance funding last year and are set to receive $7.45 million in the 2013-16 cycle, the fifth-highest of any New Zealand sport.
Part of that investment was based on Nicholson's performances. He helped New Zealand win team bronze at the 2010 World Equestrian Games and 2012 Olympics.
However, with three scores counting out of four riders at Rio rather than five riders at London, the emphasis will be on picking athletes suited to a team, because that's perceived as the best chance of earning one of two targeted medals.
Jock Paget, Tim and Jonelle Price and Sir Mark Todd have secured top-10 finishes at four-star events in the past year, along with Nicholson.
New Zealand are yet to qualify for any spots at Rio after their 15th-placed team performance at the World Equestrian Games, site of the original fallout. They must contest an Asia-Pacific Olympic qualifier in the Netherlands in October.