Football manager Josh Mahoney said: “Daniel, whilst not intoxicated, consumed alcohol when he was a member of the rehab group and compromised the training and rehabilitation standards of the Melbourne Football Club.
“He will not be available for selection at any level this week.”
The breach occurred two weeks ago, but the suspension was activated based on the first week that he was medically cleared to play.
Nicholson will be available for VFL and AFL selection next weekend.
The 21-year-old has played nine matches after making his AFL debut last year.
