The Foxes were beaten 2-1 at the Emirates last time around.
The Foxes were beaten by the Gunners in a huge title clash at the Emirates in the last round of Premier League fixtures.
They had been more than in the game before a sending off for Danny Simpson swung it in the Gunners favour, with Danny Welbeck scoring a last-gasp header to seal the win.
Despite that loss, Nicholas now says he saw enough from Claudio Ranieri’s side to suggest they could win the title this season.
“They convinced me they can do it,” he told Soccer Saturday.
“I think a lot of people were watching the game and there was a feeling of watching that team and they were capable of potentially winning the title.”
“They have a lovely balance and I can understand why people say they can win it.”
Given the way they have played so far, and with the limited number of fixtures remaining, there is no doubt Leicester are genuine title contenders this season.
They are set to take on four of the bottom six in their last 12 games, with all of those clashes coming at home as well.
That gives them a huge advantage over their rivals in the run-in, and if they can perform as they did at the Emirates Stadium, and the Etihad before that, there could be no stopping them as the season draws to a close.