Nicholl joined UK Sport in 1999 and took over as chief executive nine years ago. During her tenure, Britain finished third in the medal table at both the Olympics and Paralympics at London 2012 and second at both Games four years later.
Despite helping oversee 863 medals across summer and winter Games, the win at all costs mentality at UK Sport has been questioned in some quarters with concerns over athlete welfare at a number of sports funded by the organisation.
Nicholl said: “This really is the best job in sport and I have enjoyed every minute of it. Our athletes are undoubtedly among the very best prepared and supported in the world and I am confident we can continue to build on the successes of recent Games.”