He will join Azhar Mahmood at the club, who is spending his sixth season at the club. Nicholson, who plays for New South Wales in Australia, has a career average 28.97 and has taken a total of 314 wickets.
Alan Butcher told the official Surrey website, "Matthew will bring that added fire to our pace attack that we will certainly need moving into Division One. He added, "I'm really looking forward to working with him,"
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