Nichols was released by Arizona on Saturday, Darren Urban of the Cardinals' official site reports.
Nichols was one of two players removed from the active roster. The Cardinals needed the roster room to add wide receiver Malachi Dupre and defensive tackle Pasoni Tasini.
Nichols was promoted from the Cardinals' practice squad to the active roster Tuesday, Darren Urban of AZCardinals.com reports.
Nichols will become a member of the active roster for a third time this season, having appeared on special teams in two contests throughout the Cardinals' first five games.
Nichols was waived by the Cardinals on Saturday, according to the NFL's official transaction log.
Nichols has now been waived, re-signed and waived again by Arizona within the last two weeks. Veteran safety Eddie Pleasant was signed in favor of Nichols to serve as a depth option in the secondary.